Define the annual worth of this investment

Assignment Help Business Economics

Reference no: EM131092938

A car is financed as follows: $2,000 as a down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $14,500. It is expected that maintence costs are going to be $400 in the first year, increasing by $150 every year thereafter. Define the annual worth of this investment.

Reference no: EM131092938

Questions Cloud

Proper land use and conservation of natural resources : Land and nonrenewable resources are always going to be topics with many contradictory viewpoints. How to use these fixed resources and when to use them are controversial issues that will create a hot debate for some time to come. What economic factor..

Calculate at least one ratio from each of four categories : Calculate at least one ratio from each of the four(4) categories. Based on a,b and c, What do you think of each company's performance?Would you prefer owning stock in one or both companies or neither?

Non renewable resources important to the global economy : Land is a resource that has largely been misused and taken for granted. Land is continually improperly utilized. Obviously, the supply of land is fixed. Because of this fact, economists refer to land as producing economic rent. Why is the proper use ..

Were you aware of the caste system : Were you aware of the Caste System? What is your reaction - thoughts? Can you think of a similar situation in other countries? This is more a sociology question.

Define the annual worth of this investment : A car is financed as follows: $2,000 as a down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $14,500. It is expected that maintence costs are going to be $400 in the first..

Discuss how the program would be implemented : Describe the program in the context of the two (or more) conditions that you previously selected. Explain why you believe this program will be effective by drawing on research concerning prejudices.

Sorting machine that is expected to produce return : The Dominion Freight Company has invested $50000 in a new sorting machine that is expected to produce a return of $7500 per year for next 10 years. At a 7% annual interest rate, is this investment worthwhile?

Compute a competitive equilibrium : Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 1. Let the Pareto weight on consumer 1 be λ ∈ (0, 1) and the weight on consumer 2 be 1 - λ. Compute the Pareto optimal allocation. Define a competitive equilibrium for this economy (with tr..

Which method would result in the higher pretax income : FIFO and LIFO, which method would result in the higher pretax income? FIFO and LIFO, which would result in the higher EPS? FIFO and LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate.

User Account

All Pages