From January 1, 1979 to January 1, 1980 is 1 year.

The price of the car is = a down payment/deposit of 3000 + remaining balance of

Since the man did not bother to make any of the $500 quarterly payments until April 1, 1980, the accumulated amount (future value) of his remaining balance on January 1,1980 is

Accordingly, “the rest of the 5 year period” is 5-1.

The new quarterly payments can then be determined by solving for R in the following equation:

By my reckoning, the answer on you tutorial sheet is correct.