You are purchasing an automobile priced at $20,000 by borrowing at 12% – McqOptions

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1.	You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for ﬁve years. What is the constant dollar value (value at the time of ﬁnancing) of the 36th payment of this loan, if the generalinﬂation rate is 5% compounded monthly?
A.	361.91
B.	383.66
C.	444.89
D.	396.02
Answer» C. 444.89

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