Compute the present value of the remaining loan

Assignment Help Financial Management
Reference no: EM131959548

Rachel purchased a $21,000 car three years ago using a 8 percent, 4-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. First calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. What is the minimum price Rachel would need to receive for her car.

Reference no: EM131959548

Questions Cloud

Expectations for business strategy in financial forecast : Why is it important to incorporate expectations for business strategy in a financial forecast?
The stock expected to grow after year three : At what constant rate is the stock expected to grow after Year 3?
Does the new assumption change investment decision : Calculate the net present value for each project. Does the new assumption change the investment decision?
Decided that she wants to build enough retirement wealth : Monica has decided that she wants to build enough retirement wealth that, How much money does she need to contribute per month to reach her goal?
Compute the present value of the remaining loan : Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan.
The expected rate of return from this investment opportunity : what is your estimate of the expected rate of return from this investment opportunity? Calculate the standard deviation.
What is the value of call option : Suppose the current price of Ervin stock is $79. What is the value of the call option if the strike price is $75 per share?
Determine the company operating leverage : Calculate the percentage change in profits if sales decrease by 10 percent. Determine the company's 2008 operating leverage.
How much are you willing to pay for this annuity : Suppose your annual discount rate is i = 5.25%, how much are you willing to pay for this annuity?

Reviews

Write a Review

Financial Management Questions & Answers

  Capital structure have on firms profit-return on equity

Seattle Health Plans currently uses zero debt financing. Its operating profit is $1 million, and it pays taxes at a 40 percent rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. What impact would the new c..

  Known as rate of return and discount rate

Your finance professor Dr. Awesome makes you the following offer: She will give you $3,000 at the end of each year for the next SIX years if you agree to pay her back $2,500 at the end of each of the following ten years. Should you accept this offer ..

  New state-of-the-art camera to produce its monthly magazine

Hollywood Tabloid needs a new state-of-the-art camera to produce its monthly magazine. The company is looking at two cameras that are both capable of doing the job and has determined the following: Camera 1 costs $4,000. It should last for eight year..

  Determine the standard direct labor hours per audit

Determine the standard direct labor hours per audit. Determine the standard direct labor hourly rate. Determine the standard direct labor cost per audit.

  Reducing waiting time

One of the few determinants of demand that healthcare managers can control is waiting time. Ample evidence indicates that long waits discourage patients and drive up costs. Acton (1975) estimated that the elasticity of demand with respect to waiting ..

  Rate of return you earned on plaxo stock is what percent

The common stock of Plaxo Enterprises had a market price of $10.44 on the day you purchased it just one year ago. During the past year, the stock paid a dividend of $1.43 and closed at a price of $11.66. What rate of return did you earn on your inves..

  What will be the annual rate of return on the bond

A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.4%, and sells for $1,160. Interest is paid annually. If the bond has a yield to maturity of 9.6% 1 year from now, what will its price be at that time? What wil..

  Discuss the operations of an insurance company

This week we discuss the operations of an insurance company. As stated before, the primary technique for risk management is transferring the risk, usually to an insurance company. Ask the risk manager of your company who provides the property insuran..

  Compute total dollar interest payments for the six months

Compute total dollar interest payments for the six months.

  Expected to reduce the annual cost of defined benefit plan

Which of the following actuarial assumptions would be expected to reduce the annual cost of a defined benefit plan?

  Yield to maturity today using baii financial calculator

What is the yield to maturity today using BAII financial calculator?

  Describe in detail the thinking of one of the factions

List the four factions that emerged in response to foreign influences on Hebrew ways at the time of the Second Temple. Describe in detail the thinking of one of the factions.

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