FIN250 Milestone 2

Question 3 a. Mr. Mwansa decided to use part of his retirement package to invest in heavy duty equipment for solar power project. Based on the data given in Table 1, calculate the payback period using the discount rate of 12%. a. What advice would you give to Mr. Zulu if he intends to purchase similar equipment using a bank loan with a maximum repayment period of 36 months? Table 1: Details of the costs Details Cost of Purchase of equipment Cost of fuel and maintenance Income earned from hiring out the equipment 2019 470,000 2020 15,500 2021 2022 15,500 17,000 160,960 190,000 210,000 2023 18,000 220,000 2024 20,000 240,000 2025 22,000 260,000 hig h 2026 25,000 G S 280,000

Question a Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3%interest. Assume her payments will be made at the end of each year 1–4. If Tori’s old car can be traded in for $3325, which is her down payment, what is the most expensive car she can purchase? Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lin

Thankyou for answering the first two parts can you please give the solution for subpart c and d

Pls help me get the answer correctly thanks a lot

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Q 1 Hank purchased a car for $23,500 two years ago using a 4-year loan with an interest rate of 6.0 percent. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan.   What’s the minimum price Hank would need to receive for his car? Calculate his monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) MINIMUM PRICE?

QUESTION 3 You have decided to buy a new car. The total cost, including options, fees and taxes, is $30,760. The dealer offers three financing options as long as you make a down payment of at least 15% and you decide to put down exactly 15% Option 1 a 3-year loan with an interest rate of 7% Option 2 a 5-year loan with an interest rate of 5% Your goal is to pay as little total interest on the loan as possible, making regular monthly payments on one of these two financing options. For each option, show the monthly payment amount and the total interest that will have been paid over the entire term of the loan.

Question 2                                                                                             You are working as a personal financial adviser. Alecia, one of your clients approached you for consultation about her plan to buy her dream house that costs $400,000. Alecia has a saving of $100,000 and is considering two alternative options:   Investment 1: Investing that $100,000 in an investment that would pay a rate of return of 9% annually, compounding semi-annually for 15 years.   Investment 2: Buying her dream house now. Then Alecia needs to borrow $300,000 mortgage from Prosperity Bank. The current interest rate the bank offered for the new mortgage is 4% annually, compounding monthly. The standard life of mortgage in Australia is 30 years.   Required: A) Compute the effective annual interest rate (EAR) Alecia would actually get in Investment 1.  B) Calculate the amount of money Alecia would accumulate in Investment 1 after 15 years.  C) In Investment 1, how many year longer…

Question 16 Anh decided to buy a new car that costs $35,500. She knows that she can get a 6-year loan at 3.8% interest, and she has budgeted for a maximum monthly payment of $450 What is the minimum down payment Anh needs to make to keep her monthly payments at or below $450? (Answers are rounded to the nearest ten dollars.)     A.$6,570 B.$2,370 C.$3,100 D.$9,550

It's urgently plz sir please help me

****Only answer this question if you are sure about the correct answer**** ***Internal rate of Return Question*** 23- You want to buy a solar system to your store. a. If the monthly energy bills you get now is $125. b. The solar panel system is expected to be usable for 30 years. c. The cost of the lar panels system is $18,000. d. The solar panels system will provide all the electricity for your store. e. There will be a 26% federal tax break for purchasing the solar panels system 1. What is the IRR % (...........) 2. Yes or no, based on IRR is this a good investment (.........)

Situation 2: Mr. Franklin wants to save for a new sports car that he expects will cost $38000 four and one-half years from now. 17. a.) How much money will he have to save each year and deposit in a savings account that pays 6.25% per year, compounded annually, to buy the car in four and one-half years? A. $8746.57 B. $8537.28 C. $8654.32 D. $8472.89 18. b) Suppose that Mr. Franklin makes a deposit at the beginning of each year, rather than at the end. How much money must be deposited each year? A. $6680.42 B. $6753.27 C. $6658.73 D. $6707.50

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