A car dealer offers to buy your car for $9,500 so that you can purchase a new one. If your monthly payment is $464.23 with an annual interest rate of 4.8% and you have 20 more payments remaining, is the present value of your car loan more or less than the amount the dealer is offering?     How much more or less (in dollars) is the present value of your car loan compared to the amount the dealer is offering? (Enter a number. Round your answer to the nearest cent.)

Q: Suppose you are planning to buy a car and just found one that is selling for $5,700. You have $1,000…

A: Equated monthly payment is a fixed payment given by the borrower of the loan to the lender on a…

Q: ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: I need assistance to solve this problem: On September 1, 2018, you bought a car for $23,000. You…

A: Calculation of payoff the loan on November 1, 2020:First it is required to calculate the total…

Q: ssume that you wish to trade in your old car and buy a new car. The new car has a list price of…

A: Price of new car=$26983.54Number of payments=n=72Monthly rate=r=3.84/12=0.32%

Q: You have already saved $6975 to buy a used car. You invest this money in a certificate of deposit…

A: Future Value refers to the value of the current asset at any specified future date for a given…

Q: You are looking to buy a car and can afford to pay $210 per month. If the interest rate on a car…

A: Loan amount refers to an amount that is being borrowed by the borrower from the lender at a…

Q: Suppose you can afford to pay $ 250 a month for 8 years towards a new car with no down payment. If…

A: Given details are : Monthly payment = $250 Time period = 8 years Interest rate = 4.75% We need to…

Q: Someone offers an investment opportunity that will pay you $725 at the end o next 17 years. How much…

A: Maximum value is the present value of cash flow from the annuity based on the time value of money…

Q: You can afford monthly payments of $400. If current mortgage rates are 4.09% for a 30-year fixed…

A: When a person takes a loan to buy an expensive ticket item like a car or a house then periodic…

Q: A car dealer sells a new car for $18000. He also offers to sell the same car for payment of $375 per…

A: We take loans when buying large ticket items like a car, a bike, a house etc. The loan is repaid in…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Use Worksheet 5.2 and Exhibit 5.6. Emma Sanchez is currently renting an apartment for $575 per month…

A: There is no direct answer about whether renting or owning a property is preferable. The decision is…

Q: Solve the following problems. Round your results to the nearest cent as needed. You need a loan to…

A: P = $24,200 (loan amount),(monthly interest rate),n=6×12 (number of months in 6 years).

Q: You have two monthly car payments of $400 each left on your car. If the interest rate is 0.75…

A: Monthly Payment (PMT) = $400Monthly interest rate (r) = 0.75% or 0.0075Number of periods (n) = 2…

Q: You are interested in buying a new car. The sticker price is $38, 616.00 and you have $3,434.00 to…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You wish to buy a car that has a monthly payment of $250 and with a down payment of $1000. You find…

A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

Q: Troy wants to buy an additional screen for his computer which he saw in an advertisement for RM2500…

A: In hire purchase agreement the ownership is transferred to the borrower only after the loan is…

Q: You are planning to buy an used car from a local dealer. The list price of the car is $12,000. If…

A: List Price of Car = $12,000Down Payment = $5,500Cash cost of car = $11,000Bank Interest rate =…

Q: sidering buying a new car. The sticker price is $15, ment. If you can negotiate an annual interest…

A: In this we need to calculate present value factor and get monthly payment.

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You have decided to buy a car, the price of the car is $18,000. The car dealer presents you with two…

A: Using a loan amortization calculator or formula, we can calculate the monthly payment for option…

Q: Miguel can afford to pay $125.00 per month for a car. He has $5,000.00 saved up for a down payment.…

A: When a borrower borrows a loan from the lender, He has to pay some interest charges on the loan…

Q: You are considering purchasing a car with a sticker price of $50,000 (nonnegotiable with no down…

A: The amortization of loan refers to systematic, equal and regular repayment of loan. The instalment…

Q: Finally, you have decided to buy a car. You are able to negotiate the price down to $12,000. You…

A: given, r = 2.5% n = 3 m =12 p =12000 applying formula for monthly payment:…

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash…

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under…

Q: Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The…

A: It is given that, the price of the car is $57,000 and the down payment is $10,000.So, the loan…

Q: You obtain a 30-year home mortgage and your monthly payment is $3000.00. Instead of paying monthly…

A: Time period for mortgage is 30 years Case -1:Monthly payment of $3000 Case -2: Yearly  payment of…

Q: You are planning to buy an used car from a local dealer. The list price of the car is $12,000. If…

A: List Price of Car = $12,000Down Payment = $5,500Cash cost of car = $11,000Bank Interest rate =…

Q: Lena Horn bought a Toyota Tundra on January 1 for $30,800 with an estimated life of 6 years. The…

A: a. Depreciation per annum = ( Cost - Salvage value) / Useful life

Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…

A: The amount that can be borrowed should equal the present value of future payments. This is based on…

Q: ou want to purchase an automobile for $31,074 . The dealer offers you​ 0% financing for 48 months or…

A: If we opt for 0% financing then the interest cost will be zero and we can defer the payment over the…

Q: Use the Buying a Car information above to answer this question. The rebate offer is $1400, and you…

A: When a mortgage is to be had at a reduced quantity it's far referred to as a rebate offer. Under…

Q: You need to purchase a car, but don’t have the money to buy it outright. Therefore, you’ll have to…

A: Cost of car=$11999 Down payment =5500 monthly payment =250 interest rate =7%

Q: You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs…

A: correct answer is option a)   year 0 year 1 year 2 year 3 year 4 year 5               cash…

Q: Terri is looking to purchase a used car for $15,000 and received the following auto loan offers. Her…

A: It is a case where Terri is willing to take a loan to buy a used car. Different loan offers are…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.