Dave Krug finances a new automobile by paying $7,300 cash and agreeing to make 30 monthly payments of $460 each, the firstpayment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of theautomobile? (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 PaymentTable Values are Based on:Present Value of LoanniX==+Table FactorCash DownPayment=Present Value ofLoanCost of theAutomobile

The present value factor can be referred from the PVIFA table for annuity payments at given interest…

Answered: Dave Krug finances a new automobile by…

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

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Not sure what the table factor would be
answer in text form please (without image)
4. PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASBancomer grants loans for the purchase of new automobiles, at 12½ % interest with monthly payments, for 4 years. It requests a minimum down payment of 10% and a maximum of 50% of the initial value of the car, excluding insurance and license plates. Considering the above, calculate the interest cost (effective rate) and the amount of the monthly payments considering the down payments from smallest to largest and varying from 10% to 10%. After a 30% down payment, the rate drops to 11.5%. The list cost of the car is $254,000.00. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
Dave Krug finances a new automobile by paying $6,800 cash and agreeing to make 40 monthly payments of $580 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. EV of $1. PVA of $1. and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment 580 Table Values are based on: Present Value of Loan n = Table Factor $ 40 12% Cash Down Payment 6,800 - Present Value of Loan Cost of the Automobile
Monthly Payment Dave Krug finances a new automobile by paying $5,800 cash and agreeing to make 30 monthly payments of $440 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) $ 440 Table Values are Based on: Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Present Value of Loan n i G II + O Answer is not complete. Table Factor 29.9599 X 30 1% Cash Down Payment 5,800 TOTT Present Value of Loan Cost of the Automobile
prepare an amortization schedule showing the first four payments for each loan. Large semitrailer trucks cost $110,000 each. Ace Trucking buys such a truck and agrees to pay for it by a loan that will be amortized with 9 semiannual payments at 8% compounded semiannually.
LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..
Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (15) percent compounded semi-annually with semi-annual payments over 4 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period. b) Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period. c) Plan 3: Make equal end-of-period payments. d) Plan 4: Make a single payment of principal and interest at the end of the loan period. e) A different plan: Pay off the principal in such a way that it is X, 1.5X, 2X, 2.5X... till the end of the last payment period. In addition, pay the accumulated interest at the end of each interest period.
Goran plans to buy a used truck that costs $15,000. The dealer requires a 20% down payment. The rest of the cost is financed with a 3-year, fixed-rate amortized auto loan at 5.5% annual interest with monthly payments. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas.
Use either the tables from Appendix E in your textbook or a financial calculator for this question. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years. The first payment is due six months after the purchase date. Libby's borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $5,000 payment was made: Select the answer that is closest to (within $250 above or below) what you calculated. If an answer is more than $250 away from what you calculated, you should consider it incorrect. Group of answer choices A)$45,000 B)$33,664 C)$38,664 d)$40,000 e)None of the above
You purchased a new washer and dryer for $1,297.07 (including sales tax and delivery). Financing was used for the full purchase price and the payments are $141.43 per month for 11 months. What is the cost for the loan?

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