So, I've been doing online exercises of command annual interest, but I'm having a lot of trouble with this one, the other exercises are ok. I tried everything, but the system always says it's not the right answer. Our teacher did not taught us this at all and is not going to help us.
Exercise:
An advance payment of 16.79% will be given upon purchase. The rest will be paid after 48 months taking into account a compound annual interest rate of 5.57%. The advance payment is €525.95. How much will the purchase ultimately cost (accurate to 2 decimal places)?
I thought it was like this:
€525.95 / 16.79% = 3.132,52
K = P x (1 + i)^n
K = (83,21% x 3.132,52) x (1 + 5,57%)^48/12
K = 3237,66
Total purchase cost: 3237,66 + 3.132,52 = 6370,18
But it's sadly not the correct answer.
Exercise:
An advance payment of 16.79% will be given upon purchase. The rest will be paid after 48 months taking into account a compound annual interest rate of 5.57%. The advance payment is €525.95. How much will the purchase ultimately cost (accurate to 2 decimal places)?
I thought it was like this:
€525.95 / 16.79% = 3.132,52
K = P x (1 + i)^n
K = (83,21% x 3.132,52) x (1 + 5,57%)^48/12
K = 3237,66
Total purchase cost: 3237,66 + 3.132,52 = 6370,18
But it's sadly not the correct answer.