Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If youthink that the present value of your car is $9,000 and the interest rate is 10%, what is the minimumannual payment that you would accept? How to solve this problem on BAII Plus Why is this not $3435.48, the answer is $3,123.16, I am using the BAll Plus calculator and don't know what variables Iam misinputting especially after I finish the first step to get the PV of the car after 2 years which is10,890.00

Present value of car = $9,000Interest rate = 10%Number of annual payments = 4To find: Minimum annual…

Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you think that the present value of your car is $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept? How to solve this problem on BAll Plus Why is this not $ 3435.48, the answer is $3, 123.16, I am using the BAll Plus calculator and don't know what variables I am misinputting especially after I finish the first step to get the PV of the car after 2 years which is 10,890.00

Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you think that the present value of your car is $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept? How to solve this problem on BAll Plus Why is this not $ 3435.48, the answer is $3, 123.16, I am using the BAll Plus calculator and don't know what variables I am misinputting especially after I finish the first step to get the PV of the car after 2 years which is 10,890.00

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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Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52
Use one of excel's TVM functions among =PV, =FV, =PMT, =RATE, =NPER, =CUMIPMT, =CUMPRINC answer this questions. (Please input the functions in excel and screeshot it )
Quantitative Problem: You need $18,000 to purchase a useel car. I Your wealthy uncle is willing to lend you the money as an amortized loan. He would like. would like you to make annual payments for 4 years with the first payment to be made one year from today. He requires on 8% anual return. a) What will be your amual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. b) How much of your payment will be first applied to interest and to principal repayment? Do not round intermediate calculations. Round to the nearest cent. your answers Interest Principal repayment m
You want to buy a car. A dealership in town has the SUV you want to buy for $22,510. Your first financing option is to make a down payment of $2500 and finance the rest at 2.99% APR for 72 months. How much will you be financing? $ How much will your monthly payments be under this financing option? (Round to the nearest dollar.) $ How much total money will you pay for the SUV at the end of the 72 months under this financing option? (Don't forget to include your down payment in this total amount.) $
4. Suppose you want to buy a car that costs $27000 with a loan at 3.875% APR and you want your payment to be below $290. How many years do you need to finance the car? ______ years show work.
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Please Use an excel spreadsheet and show all of the steps to solve the following Please: You buy a house of $450,000 today. You put a down payment of 20% and borrow a fixed-rate mortgage of $360,000 with interest rate of 4% and 15 years. After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?
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I am hoping to buy a new car. The new car that I am hoping to buy costs $27500. I anticipate that the dealer will give me a $3000 credit for trading in my old car, which will reduce the amount that I will need to finance. I am planning on financing the car for 4 years at 3.25%. a. Using the above information, determine the amount of my monthly car payment. After hearing that my car payment will be the amount indicated in part a, I ask the dealer how much my payments would be if I finance the car for 6 years. This makes the car more affordable. b. Determine the monthly payments if I finance the car for 6 years instead of 4 years. c. We all know that even though the payment amounts are lower if I extend the years of the loan, I will pay more in finance charges over time. How much more money would it cost me over the life of the loan if I finance the car for 6 years instead of 4 years?

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