Derek plans to buy a $28,355.00 car. The dealership offers zero percent financing for 56.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him to pay him $ six months from today. He can borrow money from his bank at an interest rate of 5.20%. Submit Answer format: Currency: Round to: 2 decimal places. Show Hint

Derek plans to buy a $28,355.00 car. The dealership offers zero percent financing for 56.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him to pay him $ six months from today. He can borrow money from his bank at an interest rate of 5.20%. Submit Answer format: Currency: Round to: 2 decimal places. Show Hint

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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Similar questions

For the car loan described, give the following information. A car dealer will sell you the $30,750 car of your dreams for $6,000 down and payments of $665.06 per month for 60 months. (a) amount to be paid $ 39903.60 (b) amount of interest $ 9153.60 (c) interest rate (Round your answer to two decimal places.) 20.67 % (d) APR (rounded to the nearest tenth of a percent) %
Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $42,000 loan at 3% for 72 months. What is his monthly payment by formula? (Round your answer to the nearest cent.) Monthly payment
Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a bank. If the amount of bank discount is 354.15, find the amount of the loan.
You win a cash prize worth $29,066 that you want to use to buy a new car, worth $62,234. How much will your payment be, per month, if the dealer gives you a 3.1% nominal interest rate for 61 months.
WITH COMPLETE SOLUTION 1. Diego wants to loan P90,000 to the bank to buy a motorcycle. The following options where he can loan are: Bank A offers a 6.5% interest compounding quarterly Bank B offers a 6.5% interest compounding semi-annually. Bank C offers a 6.5% interest compounding annually. Compare the three different banks by finding their total interest and the maturity amount after 6 years. Which of the three banks should Diego loan? 2. You are planning to franchise a fast-food restaurant. After searching online for relevant details, you found out that the amount in franchising your chosen business is P500,200. Your first option is to avail the loan from a financing firm that charges 5% compounded semi- annually for 3 years. Another option is from a person that charges 6% simple interest for 2 years. Which is a better option for you? Show your solutions to justify your answer.
You are financing a car worth $26194.15 with tax included. Interest rates are 11.9% compounded daily. Payments are monthly and made at the end of the month. You will own the car in 5 years. You have a down payment of $1274, Calculate the finance charge (interest charged on purchase). Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 1564.23 (Hint: Take the down payment off the total worth of the car including tax; this is your PVn. Then, find the monthly payment by hand using the ordinary general annuity formuls or use the TVM salver, You will need an interest conversion if you do this question by hand or Excel because we have daily interest but monthly payments, you will need a monthly periodic interest rate. Then find the total value of ALL your monthly payments (e. g., PMT x Total Number of Monthly Payments) and add this to your down payment; subtract the purchase price including tax of the car from this figure-the difference is the interest you'll…
Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $78,000 loan at 8.5% for 60 months. What is his monthly payment by table lookup? (Use Table 14.2) Note: Round your answer to the nearest cent. Monthly payment: TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8.00% 8.50% 9.00% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 6 $ 170.34 $ 170.58 $ 170.83 $ 171.20 $ 171.56 $ 171.81 $ 172.05 $ 172.30 $ 172.55 $ 172.80 $ 173.04 $ 173.29 $ 173.54 $ 173.79 $ 174.03 $ 174.28 $ 174.53 12 86.76 86.99 87.22 87.46 87.92 88.15 88.38 88.62 88.85 89.08 89.32 89.55 89.79 90.02 90.26 90.49 90.73 18 58.92 59.15 59.37 59.60 60.06 60.29 60.52 60.75 60.98 61.21 61.45 61.68 61.92 62.15 62.38 62.62 62.86 24 45.00 45.23 45.46 45.69 46.14 46.38 46.61 46.84 47.07 47.31 47.54 47.78 48.01 48.25…
For the Questions 3-5 assume you want to finance (borrow) $12,000 for your next car and your interest rate will be 6%. 3. What will be your monthly payment and the total amount paid over the life of the loan if you finance for 48 months? Provide the car payment and the TVM inputs you used to calculate the payment. Рayment Total of all payments PV FV RATE/INTEREST PERIODS/N (See next page for Questions 4 and 5)
answer in text form please (without image)
b) Starting from 1* June 2021 with a fresh bank account, Ah Guan save RM320.00 into the bank account every month. A fixed interest of 0.8% is given on the last day of every month. Determine the date (the last day of a month after the interest is given) where he will be able to purchase a smartphone worth RM3126.00 *display your final answer as: [last day of the month] / month / year
For the car loan described, give the following information. A car dealer will sell you the $30,750 car of your dreams for $6,000 down and payments of $665.06 per month for 60 months. (a) amount to be paid $ 512.5 (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) 1.72 X % (d) APR (rounded to the nearest tenth of a percent) 20.7 X %
For the car loan described, give the following information. A car dealer will sell you the $30,350 car of your dreams for $6,000 down and payments of $669.06 per month for 60 months. (a) amount to be paid $ (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) % (d) APR (rounded to the nearest tenth of a percent)

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