Question 1 options: An appliance was financed with an interest rate of 1.35% per month through 3 equal payments in months 4, 8 and 12 worth 1,500,000 each. After the first installment (month 4) has been paid, it is proposed to pay the balance with a single installment in month 18. What is the value of the installment?

To find the value of the single installment in month 18, we need to calculate the remaining balance after the first three equal payments have been made. Let's break down the problem step by step: 1. Calculate the remaining balance after the first three payments: The total amount financed for the appliance is the sum of the three equal payments: Total financed amount = Payment 1 + Payment 2 + Payment 3 Total financed amount = 1,500,000 + 1,500,000 + 1,500,000 = 4,500,000 Now, we need to find the future value of the remaining balance after the first three payments at an interest rate of 1.35% per month for 6 months (from month 12 to month 18): Remaining balance after 3 payments = Total financed amount * (1 + interest rate)^number of months Remaining balance after 3 payments = 4,500,000 * (1 + 0.0135)^6 = 4,500,000 * (1.0135)^6 ≈ 4,877,025.56 2. Calculate the value of the installment in month 18: Since the remaining balance after the first three payments is approximately 4,685,280.38, we can set up an equation to find the value of the single installment in month 18: Remaining balance = Single installment * (1 + interest rate)^number of months 4,877,025.56= Single installment * (1 + 0.0135)^18 Solving for the single installment: Single installment = 4,685,280.38 / (1.0135)^18 ≈ 4,877,025.56 / 1.257974 ≈ 3,831,135.19 Therefore, the value of the single installment in month 18 is approximately 3,831,135.19