Find the present value of the car payments

Reference no: EM131954855

Question: A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $588 each, with the first payment to be made one month from today. If the discount annual rate is 17.10 percent compounded monthly, what is the present value of the car payments?

Round the answer to two decimal places.

Reference no: EM131954855

Questions Cloud

What is annual equivalent worth of this marketing campaign : What is the annual equivalent worth of this marketing campaign over the next three years?

How much will dividends per share be : If the $3 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer.

Calculate the payment due at maturity : Calculate the payment due at maturity.

Determine interest rate used in computing project balance : Determine the interest rate used in computing the project balance. Enter your answer as a percentage between 0 and 100."

Find the present value of the car payments : A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $588 each.

What will be the required return on portfolio : You have been managing a $5 million portfolio that has a beta of 1.95 and a required rate of return of 12%. The current risk-free rate is 5.75%.

What year do you break even on your investment : In what year do you break even on your investment?

How many shares of stock will the company have to sell : Captain jack's Shipyard, Inc., needs to raise $25 million to finance expansion. The company's investment bank recommends an offer price ( or gross proceeds).

What is the restocking cost : What is the total carrying cost? What is the restocking cost? Should Trektronics increase or decrease its order size?

User Account

All Pages