QUESTION 4 Ann bought a new home entertainment system today from Andre's Electronics. She will receive a cash rebate of $227.00 from Andre's Electronics today, pay $718.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,642.00 from Andre's Electronics in 2 years, and pay $4,981.00 to Andre's Electronics in 4 years. If the discount rate is 18.21 percent, then what is the present value of the cash flows associated with this transaction? O $-541.47 (plus or minus 3 dollars) O $-1,756.26 (plus or minus 3 dollars) O $-2,220.78 (plus or minus 3 dollars) O $-1,203.64 (plus or minus 3 dollars) none of the answers are within 3 dollars of the correct answer

QUESTION 4 Ann bought a new home entertainment system today from Andre's Electronics. She will receive a cash rebate of $227.00 from Andre's Electronics today, pay $718.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,642.00 from Andre's Electronics in 2 years, and pay $4,981.00 to Andre's Electronics in 4 years. If the discount rate is 18.21 percent, then what is the present value of the cash flows associated with this transaction? O $-541.47 (plus or minus 3 dollars) O $-1,756.26 (plus or minus 3 dollars) O $-2,220.78 (plus or minus 3 dollars) O $-1,203.64 (plus or minus 3 dollars) none of the answers are within 3 dollars of the correct answer

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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Question 5: JJ takes out a conventional loan to purchase a car. The interest rate is 6.8% compounded monthly and JJ has six years to repay the $10,000 they borrowed. What are JJ's monthly payments?
question 2
PART B: BORROWING MONEY Serena is going to college to study nursing. She estimates that she will need $35,000 to cover her three-year program. Her costs include living expenses, food, tuition, books and school supplies. She estimates that she will be able to save $12,500 from her summer job to help pay for college. She will borrow the remaining money for 5 years, compounded monthly at 3.8%. a) How much money will Serena be borrowing from the bank? (KN-2) b) What will Serena's monthly payments be? (AP-3) PV PMT FV Rate 3.8% Periods Compounding Monthly c) How much interest does she pay on the loan? (AP-2) = = = = = PART C: SAVING FOR THE FUTURE You and your best friend have decided that you are going to go an African Safari once you have graduated from college. You estimate that this trip of a lifetime will cost $12,000. You decide that you will start investing for your trip now. You will be investing money for 4 years in account with an interest rate of 6.15% compounded quarterly. a)…
Question 4 Jim and Nancy just got married today. They want to start saving so they can buy a house five years from today. The average house in their town today sells for $150,000. Housing prices are expected to increase 4.5 percent a year. When they buy their house five years from now, Jim and Nancy expect to get a 30-year (360-month) mortgage with a 7 percent nominal interest rate. They want the monthly payment on their mortgage to be $700 a month. Jim and Nancy want to buy an average house in their town. They are starting to save today for a down payment on the house. The down payment plus the mortgage will equal the expected price of the house. Their plan is to deposit $2,500 in a brokerage account today and then deposit a fixed amount at the end of each of the next five years. Assuming that the brokerage account has an annual return of 8 percent, how much do Jim and Nancy need to deposit at the end of each year in order to accomplish their goal?
QUESTION 1 Liam can afford $175 per month as a car payment. If Liam can get an auto loan at 4% interest for 5 years, how expensive of a car can Liam afford? Give your answer to the nearest dollar.
Item 3 Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.)
Question 1
question 6
Save Answer Mike is able to pay a monthly 30-year mortgage payment of $1,800. After shopping around, he found a bank that will loan him money at a 4.8% annual interest rate, compounded monthly. What is the most expensive home Mike can afford? Enter your answer as a numerical value (no labels) and round to the nearest dollar.
A manufacturer of video games develops a new game over two years. This costs $850,000 immediately and a second amount of $850,000 at the end of Year 2. When the game is released, it is expected to make $1.2 million per year for three years after that (i.e. from Year 3 to Year 5). What is the net present value of this decision if the cost of capital is 10% ? answer options below, can you show me how to do itin the TVM function on casio fx9750giii $1, 616, 299.50 $1,091, 278.72 $1, 290, 587.16 $913, 820.16 $1,389, 290.81
Mortgage, part 1 (The Loan)5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment? How much of the purchase price did you finance with the loan? What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much did you pay to the lender (total) over the first 5 years? How much of what you paid to the lender in the first 5 years was interest? If you paid this loan for all 30 years, how much interest would you pay?
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