All other factors remain the same and assuming the gasoline costs $4.00 per gallon.

Q: You buy a house that costs $10,000. Its annual maintenance cost = $100/year. After 5 years, you can…

A: Given: Initial cost = $10,000 Maintenance cost = $100 Years = 5 Year 5 sale value = $20,000

Q: Option A: Buying a car at a discounted price of $24,048 in cash now. Option B: Buying a car at the…

A: Present value is the current value of future cash flows.

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Calculate the Net Present Value (or cost) of an e-car over a period of 15 years.

A: Net Present value is used to calculate the current total value of a future stream of payments.

Q: Assume you are preparing to move into a new neighborhood. You are considering renting or buying.…

A: 1. Total amount of rent for next 15 year can be computed shown as below: Therefore, Present Value…

Q: You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on…

A: You will buy the car after 5 years.The car costs = $35,600henceYou need $35,600 after 5 years.You…

Q: Choosing to commute to work by driving a hybrid vehicle will save $130 every quarter in fuel. If…

A: The present value method is a method of finding out the profitability of the project by discounting…

Q: Show complete solution: Consider the following options in purchasing a car:   Option 1 = purchase…

A: Calculation of which option are more economical are as follows

Q: Suppose that you drive 24,000 miles per year and gas averages $4 per gallon. a. What will you save…

A: This is a case of financial analysis of fuel costs. Fuel costs depends on two factors – no. of miles…

Q: f you are saving the same amount each month ($A) in order to buy a new sports car when the new…

A: Explanation:   (F/A,i,n) factor = Series Compound Amount This calculates the future value of the…

Q: You're thinking of buying a car to travel around in, rather than paying $2,788 at the end of every…

A: We first need to determine the NPV of the cost of owning the car for 14 years. Once we have…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: The time value of money is a concept in finance that considers the effect of compounding into…

Q: Your clinic is considering buying a two- module GeneXpert System from Cepheid for TB testing. The…

A: EAC is the annual cost of owning, operating, and maintaining an asset over its entire life.

Q: pose Hassan decides to explore the costs of financing a more expensive vehicle. The more expensive…

A: Here,Vehicle cost is $34,900Interest Rate of Dealer's Financing is 3.9%Tenure of Dealer's financing…

Q: Months Financed Maximum Car Price 48 60 f you finance the car for a shorter period of time, you can…

A: To determine the maximum car price, we need to find the PV of the monthly payment and then add the…

Q: You look at your budget and decide that you can afford $290 per month for a car. What is the maximum…

A: Annuity payment (P) = $290 Monthly interest rate ( r ) = 0.25% (3%/12) Number of Periods (n) = 60…

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Financed for 48 months: $17,267.77Financed for 60 months: $19,621.38

Q: You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given,  Amount saved for Down payment is $5000 Amount of monthly payment is $500 Rate is 6%

Q: payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 me…

A: The monthly payment consist of payment of principal and interest to be paid over the life of…

Q: There is a choice to buy a car worth $32,000 with 100% financing at 3.99% APR for 60 month or lease…

A: An individual decides to purchases or leases an asset by evaluating the cost of both the…

Q: (Table: Car Costs) The table shows the initial cost outlays of two versions of the Ford Escape and…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. Project with…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given data; down payment amount = $3000 monthly payment = $400 Annual interest rate = 12% number of…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: We take loans to buy expensive things like a car, a yacht, etc. which we otherwise are not capable…

Q: The price of a car you want is $39,000 today. Its price is expected to increase by $1000 each year.…

A: The future value of any amount or payment is the worth of the investment at some future date based…

Q: What is the monthly payment for loan 2 (rounded to the nearest whole dollar)?

A: Loan means the amount borrowed by a particular person or business from the bank or other financial…

Q: You can buy a car that is advertised for $20,520 on the following terms: (a) pay $20,520 and receive…

A: Zero percent financing, often used in the context of car purchases, is a financing arrangement where…

Q: Problem: Yuseff was able to sell a car whose suggested retail price is $1,2000.000. The vehicle will…

A: In this question the retail price is lower than the down payment which is not possible. So let’s…

Q: Suppose that you are thinking about buying a car and have narrowed down your choices to two options.…

A: Loan repayments are usually made through periodic (usually monthly) fixed payments. This periodic…

Q: 1. You have two options to purchase a car. Your first option is to purchase the car at $26.200 and…

A: The objective of this question is to compare two options for purchasing a car: financing the car…

Q: Suppose that you are thinking about buying a car and have narrowed down your choices to two options.…

A: For the purchases of large ticket items and big ticket items we usually get the purchase financed in…

Q: me cars and pay PO.52 per mile. e the cars for P9.238 and econor sold for P2,021. Gas and oil cost

A: Let the no. of miles driven each year be x. The present value annuity factor (payment at the end of…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Present value is the value of the money in present times which is expected to be received in some…

Q: (Table: Car Costs) The table shows the initial cost outlays of two versions of the Ford Escape and…

A: GIVEN, RATE = 7%

Q: A student takes out $10,000 in loans. If she repays the loan over a 10 year period, calculate the…

A: Here we will use the concept of time value of money. The concept of time value of money states that…

Q: most likely have 4. What is the present worth of the landfill with annual operating costs of…

A: Annual operating cost (C) = $ 200,000 Annual interest rate (R) = 8% Period (N) = 20 Years

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.