Danielle wants to buy a car. She can only afford a $350 car payment. She is given a financing option from Money Financial, Inc. which will allow him to repay the loan over 4 years. The interest rate is 4.25%. Can Danielle purchase the car if the financing amount is $16,000? If not, how much can she afford to finance?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
1. Danielle wants to buy a car. She can only afford a $350 car payment. She is given a financing option from Money Financial, Inc. which will allow him to repay the loan over 4 years. The interest rate is 4.25%. Can Danielle purchase the car if the financing amount is $16,000? If not, how much can she afford to finance? DOUBLE CHECK 20,390
2. Dr. Pickens wants to buy a burger chain. He currently has $35,000. He needs to have $80,000 in 5 years. He can earn 12% compounded annually. If he saves money at the beginning of the year, how much must he save per year to meet his goal? DOUBLE CHECK 45,394
3. SARDY Corporation’s stock is currently valued at $50 per share. You own 2 shares of the stock. It is expected to grow by 5% per year for the next 5 years. How much will SARDY Corporation be worth in 8 years?
4. Donald Draper has no money after getting canned (fired) from his job as an advertising agent. He wants to have $5,000,000 in 30 years. How much would he need to steal and invest today assuming he can rob a bank and earn 10% compound annually. He will not add additional payments. He wants to know the lump sum needed to invest today. DOUBLE CHECK 286,543
5. Bud Jett (get it…like budget) has two options for an investment.
a. OPTION 1 – Invest $2,000 per month for 20 years at the beginning of each year and earn 8% annually.
b. OPTION 2 – Invest $2,000 per month for 20 years at the end of each year and earn 8% annually.
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