An enterprising engineer purchased a fleet of second-hand trucks forPhp78,000. Payment was made by an immediate cash payment ofPhp5,000 and twelve month-end payments of Phpó,486 each. Anotherdealer offered to finance the same purchase at an interest rate of 0.75%per month on the unpaid balance. Which offer should the engineeraccept?

The following formula is to be used here: Monthly payment=Price-Intermediate…

An enterprising engineer purchased a fleet of second-hand trucks for Php78,000. Payment was made by an immediate cash payment of Php5,000 and twelve month-end payments of Php6,486 each. Another dealer offered to finance the same purchase at an interest rate of 0.75% per month on the unpaid balance. Which offer should the engineer accept?

An enterprising engineer purchased a fleet of second-hand trucks for Php78,000. Payment was made by an immediate cash payment of Php5,000 and twelve month-end payments of Php6,486 each. Another dealer offered to finance the same purchase at an interest rate of 0.75% per month on the unpaid balance. Which offer should the engineer accept?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

A landscape architect accrued $7,876.36 in credit card debt. If the architect makes a monthly payment of $600 (and makes no additional charges on the account), how many months will it take to repay the debt If the annual Interest rate on the credit card is 18.8%? (Round your answer up to the nearest month.) months
The owner of a restaurant needs to borrow ₱120,000 from a bank to buy some equipment. The bank will give the owner a discounted loan at 11% rate of interest for 9 months. What loan amount should be used so that the owner will receive ₱120,000?
Dave Krug finances a new automobile by paying $7,300 cash and agreeing to make 30 monthly payments of $460 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Monthly Payment Table Values are Based on: Present Value of Loan n i X = = + Table Factor Cash Down Payment = Present Value of Loan Cost of the Automobile
John bought a car worth php 1,000,000 if paid in cash. If paid on installment basis, he will pay php 200,00 downpayment, php 300,000 at the end of one year; php 400,000 at the end of three years and a final payment at the end of five years. Interest rate is 20% compounded annually. (a). construct the cash flow diagram if paid on installment basis. (b) what will be the amount of the final payment?
A logo design company purchases four new computers for $16,500. The company finances the cost of the computers for 3 years at an annual interest rate of 4.175% compounded monthly. Find the monthly payment (in dollars) for this loan. Round your answer to the nearest cent.
Suraya wants to Buy a building. He went to apply financing with standard chartered. After proper assessment, standard chartered bank provides a financing facility under Murabahah to the Purchase Orderer principle. Financing amount: RM800,000 Rate of return: 8.2% Financing tenure: 10 years At the end of the contract, Suraya still has an outstanding amount of RM40,000. As part of condition of the Murabahah contract, Suraya will be charged an annual penalty fee of 4% for any outstanding amount due and the amount will be donated to charitable organisation. Question: (a) Record journal entries to record all of the above transactions in standard chartered bank's books (Please show your workings/calculations).
An entrepreneur bought a used heavy equipment for Rp. 96,000,000 on January 1, 2003. The entrepreneur paid a down payment of 1/4 of the price of the heavy equipment and the rest was paid in 48 monthly installments with the following conditions: · The installment amount is always the same or uniform · The first installment is paid a month after the advance payment · The interest rate is set at 14% per year which is arranged monthly. Questions: 1. How many installments must be paid each month? 2. What is the effective interest rate? 3. If the entrepreneur wants the heavy equipment to be paid in full on September 1, 2004, how many monthly installments must he pay?
A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit to be made immediately and the balance to be paid in one lump sum 6 months later. Total interest expense will be RM 2,270.92.(i) With loan amortization schedule, show the total amount be paid for the vehicle.
A nurse borrowed P100, 000 to pay for the processing fee of her papers to work in the US. She borrowed from a financing company charging 10% compounded quarterly. The loan is to be amortized by quarterly payments for a term of one year. 1) How much is the quarterly payment? 2) Construct an amortization schedule for this loan
Jie purchased a computer priced at $891.06, financing it by paying $60.38 on the date of purchase, and signing a contract to pay equal monthly payments over the next fifteen months. If the terms of the contract state that interest is calculated at 11.9% compounded monthly, how much does Jie have to pay at the end of each month? Jie must make payments of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Don James purchased a new automobile for $28,000. Don made a cash down payment of $7,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.). Required: Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Monthly payment

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS