Buy the premium mustang convertible

Assignment Help Finance Basics
Reference no: EM13342572

Ford Motor's Company's current incentives include 3.1 percent APR financing for 48 months or $1,400 cash back on a Mustang. Let's assume Suzie Student wants to buy a premium Mustang convertible, which costs $22,000 and she has no down payment other than the cash back from Ford. If she chooses the $1,400 cash back, Suzie can borrow from the VTech Credit Union at 5.1 percent APR for 48 months. (to the nearest cent)

1. If Suzie chooses 3.1 percent APR financing for 48 months to buy the premium Mustang convertible, which costs $22,000 = PMT (45.088608) what will be her monthly payment?
2. If Suzie chooses $1,400 cash back to buy the premium Mustang Convertible and borrows $20,600 from the VTech Credit Union at 5.1% APR for 48 months, how much will her monthly payment be?

Reference no: EM13342572

Questions Cloud

Find the change in length of the rod : An aluminum rod is 20.0 cm long at 20°C and has a mass of 350 g. If 12,500 J of energy is added to the rod by heat, what is the change in length of the rod
Find the volume of the bottle : A sealed bottle at 1 atm of pressure holds 1 mole of neon and 1 mole of argon gas at a temperature of 295 K. Find the volume of the bottle
What is the actual rate of return : You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the actual rate of return (or hold..
Explain hydrogen has a henerys law constant : hydrogen has a henerys law constant of 1.07x10^-6 M/mmHg at 25 degrees celsius when dissolving in water. if total pressu of gas (H2 plus water vapor) over water is 1 atm. what is the concentration of gas phase hydrogen
Buy the premium mustang convertible : 1. If Suzie chooses 3.1 percent APR financing for 48 months to buy the premium Mustang convertible, which costs $22,000 = PMT (45.088608) what will be her monthly payment?
Explain what is the entropy of h2 : The value of deltaS0 for the following reaction is - 233J/K at 250C. What is the entropy of H2 (g) at 250C? C2H2 (g) + 2H2 (g) ----> C2H6 (g) a.131 b.204 c.102 d. 262
Summary of significant accounting policies : On 14 July 2016, a rights issue of 1,280,000 ordinary shares were madeat $1.25 each. The underwriting commission and other shares issue costs forthe issue amounted to $15,000. The shares issued ranked equally with existing shares for dividend.
What is the present value of a lottery paid : How many years will your annuity last and what is the present value of a lottery paid as an annuity due for twenty years if the cash flows are $250,000 per year and the appropriate discount rate is 7.50%?
Explain enzyme that allows fireflies to illuminate abdomens : Firefly luciferase is the enzyme that allows fireflies to illuminate their abdomens. Because this light generation is an ATP-requiring reaction, firefly luciferase can be used to test for the presence of ATP.

Reviews

Write a Review

Finance Basics Questions & Answers

  What other information would you like to examine

Do the balance sheet, income statement, and the statement of cash flows contain all the information you might want as a potential lender or stockholder? What other information would you like to examine?

  What is the minimal amount you should bid per park

Your required rate of return is 15 percent and your tax rate is 40 percent. What is the minimal amount you should bid per park?

  What is the current price of the common stock using dcf

The company's last dividend , Do, was $2.00. RRV's required return is 12%. What is the current price of the common stock using DCF?

  Were the price changes the same

What is the value of your portfolio? What happens to the value of your portfolio if the yield to maturity on the bonds rises by one percentage point?

  Find the amount of the loan

An automobile company, Nissan, as temporary cash surplus and lends its funds overnight through a repurchase agreement to a government securities dealer, earning $55,600 in interest income when RP loan rate stood at 5.70%.

  What is the cost of debt to j & b

J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the cost of debt to J & B?

  True or false question based on investment plan

Senior management of Baldwin meets to estimate their investment plan for the year. They decide to fully fund a plant and machine buy through issuing 50,000 shares of stock plus a new bond issue.

  What is the estimated net present value of the project

What is the estimated net present value of the project, after consideration of the potential future opportunity?

  Finding break-even point

Air Filter, Inc., sells its products for $6 per unit. It has the following expenses, Separate the expenses between fixed and variable expenses per unit. Using this information and the sales price per unit of $6, compute the break-even point.

  Estimation of net present value

A proposed project can generate savings of $1000 per year for ten years. The initial cost of the project is $2500 and the project has a salvage value of $500 in the 10th year.

  What is the payback period without discounting cash flows

Consider the following tem-year project. The initial after-tax outlay or after-tax cost is $1,000,000. The future after-tax cash inflows each year for years 1 through 10 are $200,000 per year. What is the payback period without discounting cash fl..

  What is the maximum per check processing cost

he company invests excess cash in money market and earns 8% p.a. The lock-box system will speed up collection by 2.5 days. What is the maximum per check processing cost payable by the firm?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd