# Present Value of Loan Cash Assignment

Dave Krug finances a new automobile by paying $7,300 cash and agreeing to make 40 monthly payments of $510 each, the first payment to be made one month after the purchase. Does the loan bear interest at an annual rate of 12%

What is the cost of the automobile? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimal places.) Monthly Payment Table Factor Present Value of Loan Table Values are Based on Present Value of Loan Cash Down Payment Cost of the Automobile. Get **Accounting homework help** today