Art's Market barrows $25,000 for three years at 8 percent. Payments are quarterly. Which of these inputs correctly computes the payment amount? A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT
B. N = 12; 1 = 8/4; PV = 0; FV = 25,000; CPT PMT
C. N = 12; 1 = 8/3; PV = 25,000; FV = 0; CPT PMT
D. N = 4; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT

A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT

Explanation:

A is the correct option because,

N = 12

The period is 3 years but the payments are quaterly so the actual period is;

= 3 years * 4

= 12 quarters/ periods.

I = 8/4

The interest rate is 8% but this is stated as a Yearly value which needs to be adjusted to a quarterly value by dividing it by 4.

PV = 25,000

The Present Value of the loan is $25,000 because this is the amount that Art's Market was given in the present.

When all of this is inputted into the calculator, the answer will be; PMT =  $2,363.99.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; i believe the correct answer is energy star;