Your firm spends $5,000 every month on printing and mailing​ costs, sending statements to customers. If the interest rate is   0.5% per​ month, what is the present value of eliminating this cost by sending the statements​ electronically?

Q: Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month…

A: Calculation of Present Value of Payments:

Q: If the interest rate is 3.4% per annum, calculate the present value of (A) less the present value of…

A: The present value of two payment options helps compare the options and understand which one requires…

Q: Bahwan Automobiles is offering free credit of OMR 25000 on a new corolla car. You pay OMR 3000 down…

A: Monthly rate = 5%/12 = 0.4166667% Periods = 25 Calculate the total cost of Bahwan automobiles as…

Q: You are interested in purchasing a used bass guitar at a cost of 593.57, and you want to put it on a…

A: The credit card allows an individual to make purchases on credit, i.e., purchases for which they pay…

Q: You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted…

A: given, p=$74400 r=6.8% m=12 n=4 years (4812)

Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago.…

A: The problem case focuses on calculating the effective annual rate charged for the overdraft…

Q: You owe the Bank of US $700 in one year, $900 in 3 years, and $1200 in 6 years. How much would it…

A: Let's first understand the question and the information given -Amount due in 1 year$700Amount due in…

Q: You want to use a 50 thousand Euro loan from your bank for the annual repair and maintenance costs…

A: The given problem can be solved using PMT and FV function in excel. PMT function computes…

Q: It is still three weeks until payday and you have run out of cash. You have just received an…

A: The rate that is actually earned on an investment is called the effective interest rate. It is also…

Q: Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable…

A: For an affordable monthly mortgage payment, it's crucial to aim for an amount that fits comfortably…

Q: You are trying to save up for a downpayment on a home and you need $55, 000 to cover closing costs…

A: Future value=$55000Monthly payment=$975 Interest rate=7.65%Monthly rate=7.65/12= 0.6375Future value=…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: A small business has determined that the machinery they currently use will wear out in 18 years. To…

A: The life of the machine is 18 years.The rate of interest is 1.5% per quarter.the cost of the…

Q: his is a loan payment problem. Also considered a time value of money or TVM problem. You need to…

A: The time value of money refers to the concept that represents the money present today is more…

Q: rfirm sells for cash only, but it is thinking of offering credit, allowing customers 90 days to pay.…

A: Time value of money concept states that the worthiness of money in today's term is much more than…

Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…

A: Loan amount refers to the amount borrowed by the borrower from the lender at a specified rate of…

Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…

A: The objective of this question is to determine how much time will be reduced from the car loan if an…

Q: Your roommate let you borrow $211 to buy the PS52 months ago. You just paid him back today and gave…

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

Q: A company purchased a new machine for $70,000.  They borrowed the money to buy the machine from…

A: Given information : Purchase price = $24,000 Interest rate = 4% Time period = 24 months

Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…

A: The objective of this question is to determine how much time will be reduced from the loan term if…

Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…

A: The objective of this question is to determine how much time will be reduced from the loan term if…

Q: To save for a personal computer, you decide to invest part of your salary each month. the computer…

A: Future value refers to the value of a present sum in the future. Periodic payment amount on the…

Q: You expect that you will need to replace your furnace in 4 years at a cost of $15,228. How much must…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…

A: Loans are financial arrangements in which a lender provides money, goods, or services to a borrower…

Q: You ran a little short on your spring break vacation, so you put $2,000 on your credit card. You can…

A: Banks issue credit cards to its customers. The customers use the credit cards for making purchases,…

Q: An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at…

A: Monthly payment can be calculated with the help of below expression:

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given data; down payment amount = $3000 monthly payment = $400 Annual interest rate = 12% number of…

Q: The manger of a technology store wants to save $40,000 in 3 years to make a down payment on a…

A: Effective annual rate of interest When the benefits of compounding over time are taken into account,…

Q: a refrigerator for P500 down and P300 per month for 24 months. The same brand of refrigerator could…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: We take loans to buy expensive things like a car, a yacht, etc. which we otherwise are not capable…

Q: ou need to take out a loan of $35,000 to start up your T-shirt business. You have two possibilities:…

A: Loans are paid by the equal monthly payments and these are fixed payments that carry the payment for…

Q: A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate…

A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: Suppose you get paid every two weeks. You determine that you can afford to divert $80 from each…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: What will be the simple commercial discount that would have a document whose face value is $ 7,200…

A: The formula to calculate Simple Discount is  SD=Mrt where  SD= Simple discount M= face value r=Rate…

Q: Suppose you are in business and you buy a new machine for $40,000. After paying all other expenses,…

A: We need to compute the rate of return earned by the machine. Machine should be bought if rate of…

Q: You want to buy a new sports coupe for $75,300, and the finance office at the dealership has quoted…

A: The annual Percentage Rate shorts name is APR. It is a uniform means of quantifying the annual real…

Q: You want to buy a computer for $2,000.  The interest rate is on the loan is 12%, and you have 18…

A: First we will calculate EMI, so that we know how much we are paying in each payment.  Formula for…