How expensive a car can she afford on the dealer terms

Assignment Help Financial Management

Reference no: EM131510830

A student has a job that leaves her with $500 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% loan whose terms are $500 per month for 36 months at 15% annual interest. This student finds a car she likes and the dealer offers to arrange financing. His terms are 12% interest for 72 months and no down payment. The car's sticker price is $24,000. How expensive a car can she afford on the dealer's terms?

Reference no: EM131510830

Questions Cloud

What is the projects npv : A project has an initial requirement of $185,162 for new equipment and $11,148 for net working capital. What is the project's NPV if the tax rate is 39%?

What will be the utilization of each workstation : how many kanbans will be necessary to authorize a production run? What will be the utilization of each workstation?

What is the net present value and the profitability index : What is the net present value and the profitability index for this project?

Challenges associated with pursuing transnational strategy : What are the challenges associated with pursuing the transnational strategy?

How expensive a car can she afford on the dealer terms : A student has a job that leaves her with $500 per month in disposable income. How expensive a car can she afford on the dealer's terms?

Consider the three stocks : Consider the following three stocks: Stock A is expected to provide a dividend of $10 a share forever starting at the end of the first year (time t = 1)

Adjusted gross income is determined by? calculating : Adjusted gross income is determined by? calculating:

What should the company stock price be : You are looking to figure out what a company’s stock price should be. What should the company’s stock price be?

What is the firms required return on equity : A firm has a capital structure containing 60% debt and 40% common stock equity. What is the firm's required return on equity?

User Account

All Pages