There is a choice to buy a car worth $32,000 with 100% financing at 3.99% APR for 60 month or lease at $500 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4th year. The car will have 30% residual value in the 5th year. Sales tax on new car is 6% and required rate of return is 5%. calculate the cost of Owning this car in year 4.

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

Q: Option A: Buying a car at a discounted price of $24,048 in cash now. Option B: Buying a car at the…

A: Present value is the current value of future cash flows.

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A: Given details are : Monthly payment = $250 Time period = 8 years Interest rate = 4.75% We need to…

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A: In this we need to calculate the present value of both option and select the best.

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A: Loan Amortization is a process of determining the regular loan monthly payments. A part of these…

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Q: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

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A: We first need to determine the NPV of the cost of owning the car for 14 years. Once we have…

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Q: sidering buying a new car. The sticker price is $15, ment. If you can negotiate an annual interest…

A: In this we need to calculate present value factor and get monthly payment.

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A: Given,  Amount saved for Down payment is $5000 Amount of monthly payment is $500 Rate is 6%

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Q: What does this tell you about total cost when financing for longer periods?

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A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

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A: In this question all the option have mortgage in it and monthly payment is required.

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A: The NPV is zero when the Discounted cash flows of the project is exactly equal to the initial…

Q: NPV

A: Formula to calculate the NPV is: NPV = Cash flows/(1+i)^n - Initial investment

Q: You are considering purchasing a new automobile with the upfront cost of $26,000 or leasing it from…

A: Present value = pv = $26,000 Compound = Monthly = 12 Interest rate = r = 2.80 / 12 % Time = t = 5 *…

Q: Suppose you decide to obtain a 4-year lease for a car and negotiate a selling price of $28,990,…

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Q: You are considering buying a car (sticker price of $43,000) but need financing. The car dealership…

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A:

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A:

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Q: You want to buy a car.  A dealership in town has the SUV you want to buy for $22,510.  Your first…

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Q: me cars and pay PO.52 per mile. e the cars for P9.238 and econor sold for P2,021. Gas and oil cost

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A: Present value is the value of the money in present times which is expected to be received in some…

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Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…