Thank you all so much.
So the first two questions are correct as is, and it makes sense? (Thanks for the explanation, Chester).
And for the 3rd question--going by what Chestermiller said--it would be:
.026 * $12,300 = 319.8 * 60 months (5 years) = $19,188
Does that add up? I'll try and see if...
I've done the problems, but they don't make sense to me. The answers don't really make sense. I'll post the question, the given formulas and my attempts:
Given formulas:
(1) future value to present value:
PV= FV / (1+i)n
(2) annual payment to present value:
PV = A/i * [1 - 1/(1+i)n]...