There is a choice to buy a car worth $28,000 with 100% financing at 4.99% APR for 60 monthor lease at $450 per month. The car will need maintenance in the 3rd year worth $525 and $825in the 4th year. The car will have 35% residual value in the 5thyear. Sales tax on new car is 6%and required rate of return is 5%.calculate the Ownership Operating Advantage in year 4.$8861Ⓒ($1464)Ⓒ ($939)Ⓒ($1764)

Loans are money lended from others and these carry interest and that is paid by monthly payments and…

Answered: for 60 There is a choice to buy a car…

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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As part of your financial planning, you wish to purchase a new car exactly 5 years from today. The car you wish to purchase costs $14,000 today, and your research indicates that its price will increase by 2% to 4% per year over the next 5 years.a. Estimate the price of the car at the end of 5 years if inflation is (1) 2% per year and (2) 4% per year.b. How much more expensive will the car be if the rate of inflation is 4% rather than 2%?c. Estimate the price of the car if inflation is 2% for the next 2 years and 4% for 3 years after that.
Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,800 with factory and dealer rebates of $5,100. Hint: See Section 11.2, Example 5. (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.
A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 % down payment, you can have an amortized loan for 6 6 years at a rate of 3.5 %. What will the monthly payment be? how much will the car cost, in total? how much money will be paiid in interest? Only typed answer
13. If you botrow $1823 and pay back $2,728 in three years, what annual rate of interest are you paying? Use opposite signs for PV and FV. EXCEL FUNCTION 14. How long will it take you to triple your money af 6 % ? EXCEL FUNCTION 10. You agree to finance your new SUV with an auto loan of $51623. This loan will be repaid over four years with monthly payments and compounding at a 4% Annual interest rate. What will your monthly loan payment be? Assume PV to be negative so that the PMT is positive. I need the correct EXCEL FUNCTION.
238. Subject : - Accounting
A cloud storage engineer purchased a new car for $31,990. Complete the table below to determine the cost of owning the car for the first year of ownership. Assume the car has an average fuel efficiency of 35 miles per gallon and a 4-year loan at an annual interest rate of 3.75% on the purchase price less the down payment. (Round your answers to the nearest cent.) What are the loan payments for 1 year?
) Hendrix Company needs a new warehouse. Below are three potential options for purchasing a new warehouse. Which would you recommend? Hendrix's borrowing rate is 8%. Building 1: $1,500,000 cash purchase Building 2: Take out a 25 year loan - annual payments ($125,000) due at the beginning of each year Building 3: $1,750,000 cash purchase. There is extra space in this building that can be rented out over the 25 years. The rental agreement would state that annual payments ($21,000) are due at the end of each year. SU 000 of Insist Worth rataillon 022) CC-001 vnsqmio Telln 2012
A home worth $ 1,000,000.00 will have a 70% loan at an annual mortgage rate of 8%, with the remaining30% equity. What must the net operating income (NOl) be in order to generate a 12 per cent cash oncash return?Select the correct response:$700,000.00$120.000.00$92.000.00$84.000.00$56.000.00
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You are considering either buying or leasing a vehicle. The following data have been compiled:If your interest rate is 6% compounded monthly, at what value of the vehicle at the end of 3 years (S) would make both options economically equivalent?(a) $7,711{b) $8,980(c) $9,228(d) $9,310
You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $ Financed for 60 months: $
You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $ Financed for 60 months: $

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