You purchase a new car for $45,000. You own that car for 15 years when you sell it for $25,000. If the cost of money increases 10% over that time, how much money did you make or lose on the car when looking at present cost?

Q: It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year…

A: Given information: Purchase price = $2,500 i.e. the amount which is required at the end of one year…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Given:

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: You buy a house that costs $10,000. Its annual maintenance cost = $100/year. After 5 years, you can…

A: Given: Initial cost = $10,000 Maintenance cost = $100 Years = 5 Year 5 sale value = $20,000

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Calculations of compound interest compounded on daily basis on borrowed amount is shown below:…

Q: You would like to buy a new car. The car costs will be $81 500. If you can earn 12% per annum, how…

A: Future value is $81,500. Rate per annum is 12%. Time period is 3 years.

Q: You’ve finally found your dream home! Unfortunately, you didn’t estimate how much you could spend…

A: The following loan has been taken to purchase the preferred home and the subsequent payments are…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: How much must you save each year

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on…

A: You will buy the car after 5 years.The car costs = $35,600henceYou need $35,600 after 5 years.You…

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: When a buyer buys goods from a seller and is not able to pay the entire amount at the time of…

Q: Suppose that you drive 24,000 miles per year and gas averages $4 per gallon. a. What will you save…

A: This is a case of financial analysis of fuel costs. Fuel costs depends on two factors – no. of miles…

Q: You estimate that you can save $8,800 by selling your home yourself rather than using a real estate…

A: The question gives the following information:

Q: You're thinking of buying a car to travel around in, rather than paying $2,788 at the end of every…

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

Q: Months Financed Maximum Car Price 48 60 f you finance the car for a shorter period of time, you can…

A: To determine the maximum car price, we need to find the PV of the monthly payment and then add the…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: If offered the choice of receiving $500 today or $500 in five year's time, which option would you…

A: The concept of present and future value comes from considering the change in the value of money with…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Computation:

Q: ly, how long Will you Have logies!) В years. 2 years. ars

A: Given information : The questions demands us to compute the number of periods or years that will be…

Q: An investor is purchasing an industrial building. He needs to replace the roof today at a cost of…

A: Future value = fv = $50,000 Time = t = 20 * 12 = 240 months Inflation rate = ir = 3% Nominal rate =…

Q: You have decided that you will sell off your house, which is currently valued at $300,000, at a…

A: The objective of the question is to find out the time it will take for the value of the house to…

Q: Prof. Kim offered $1000 three year later for cleaning his room.  If the interest rate is 5%, what is…

A: Given: Future value = $1,000 Interest rate (i) = 5% Time period (n) = 3 Required: Present value

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: The computation of down payment as follows: Hence, the down payment is $15,000.

Q: 1) If you buy a 15% per yea Will this c will it take

A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the…

Q: An investor is purchasing an industrial building.He needs to replace the roof today at a cost of…

A: Future value is the value of an investment or asset at a specified date in the future, based on the…

Q: You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can…

A: The required rate of return is the rate at which the investment should grow to meet the desired…

Q: Your friend in mechanical engineering has invented a money machine. The main drawback of the machine…

A: NPV= Annual Cash inflow / Interest rate - Cash outflowIf NPV of project is positive, Project must be…

Q: How much must you save each year

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: The interest calculated on the initial or principal amount which includes all the accumulated…

Q: You are thinking of renovating a basement apartment beneath your house, which you currently rent out…

A: Incremental rent per month due to reinovation = C = $ 729 - $ 521 = $ 208Payment frequency =…

Q: You start saving up to buy your dream house. The house is valued at $620,000 right now. You think…

A: Future value can be calculated  by using the following formula  FV = Present Value (1+r)n

Q: You need $6,000 to buy new furniture. If you have $1,000 invest today at 8% compounded annually, how…

A: In this question we need to compute the number of years i.e. time period.This question is based on…

Q: Suppose you want to buy a new car that costs $32,900. You have no cash-only your old car, which is…

A: Any sum borrowed to meet personal or business needs is regarded as a loan amount. The loan amount…

Q: An apartment will generate $8,000 a year for 5 years, after which you expect to sell the property…

A: Valuation of Property or Entity : The valuation of entity is the present value of inflow generation…

Q: f I want to buy a new house and currently have $45 000 and I need to have a 10% down payment plus an…

A: Information Provided:Amount at hand (Present value) = 45,000Down payment = 10% of house costClosing…

Q: An investor is purchasing an industrial building. He needs to replace the roof today at a cost of…

A: Future value is the value of an investment or asset at a specified date in the future, based on the…