ar made in Japan by Toyota Motors costs P2M today. If you buy now you can earn 12% tax free on an auto purchase account. If the cost of the car will increase by 10% per year, how much amount that you would need to deposit in the account to provide to the purchase of the car five years from now?   please also draw the cash flow the diagram and do not us

Q: You want to bought a car for $8,000. You have monthly wage is $1,800 of which $600 will be saved for…

A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

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A: Equated monthly installments (EMI) is the equally divided installments of the loan outstanding…

Q: You're trying to save to buy a new $192,000 Ferrari. You have $42,000 today that can be invested at…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

Q: Bhupatbhai

A: Future Value = fv = $230,000Present Value = pv = $41,000Interest Rate = r = 4.5%

Q: You're trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can be invested at…

A: Here, ParticularsValuesFuture value of money (FV) $1,95,000.00Present value (PV) $…

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: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

Q: You're trying to save to buy a new $205,000 BMW 3 series sedan. You have $55,000 today that can be…

A: Cost of BMW = $205,000Amount available = $55,000Interest rate = 5.4%

Q: Today you purchase a previously owned Tesla Model 3 for $40,000. You make a down payment of $5,000…

A: Given The purchase price is $40,000 Down payment $5,000 Rate is 0.25% per month payable in 60…

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: If you have $10,000 that you want to save for 3 years, which of the following banks would you choose…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

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: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

Q: u are financing a car worth $74506.94 with tax included. Interest rates are 13.6% compounded daily.…

A: Loans are paid by equal monthly payments that carry the payment for interest and payment for loan…

Q: A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 %  down payment, you can have an amortized…

A: Down payment- While purchasing a asset, the payment which is made upfront is called down payment.…

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: You are financing a car worth $26194.15 with tax included. Interest rates are 11.9% compounded…

A: A finance charge on a loan refers to the total amount of money a borrower has to pay in addition to…

Q: A bank advertises car loans at 8% compounded monthly for 4 years. There is a 0.5% reduction in the…

A: Loans are paid by equal monthly installments that carry the payment of interest and payment of loan…

Q: Unfortunately it costs $25,000, it you want to the purchases the car in five years and in the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You want to financed a car that advertised at $31318 but you don't have money. However after…

A: The objective of the question is to calculate the total amount that will be paid to the dealer if…

Q: You are buying a car for $16,995; you are going to put down $6,500; balance to finance: $10,495 in…

A: Purchase Price of car = 16995 Down Payment on car = 6500 Loan Amount = 10,495 Number of payments on…

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.