User Account

All Pages

Minimum price rachel would need to receive for her car

Assignment Help Financial Management
Reference no: EM132011644

Loan Balance 

Rachel purchased a $25,000 car three years ago using a 10 percent, 6-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.

What is the minimum price Rachel would need to receive for her car? (Round the loan payment to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)

Reference no: EM132011644

Questions Cloud

Consider for examining if his decisions are ethical : What are the ways that Gordon should consider for examining if his decisions are ethical?
What is the stock expected price four years from today : It should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 4 years from today?
Your client once he starts to withdraw the money : how many months will it last your client once he starts to withdraw the money
Forward rate agreements and short-term interest rate futures : Compare the advantages and disadvantages of using forward rate agreements (FRAs) and short-term interest rate futures contracts to manage interest-rate risk.
Minimum price rachel would need to receive for her car : What is the minimum price Rachel would need to receive for her car?
To calculate the present value of any future amount : To calculate the present value of any future amount, To calculate present value of an annuity, divide amount to be received each year by present value factor.
Determine the effective price paid by the company for oil : Determine the effective price paid by the company for the oil. 3.2 Did it take a long or a short position in the futures contract?
Expected return and standard deviation of her portfolio : Calculate the expected return and standard deviation of her portfolio.
Use the spot market in foreign exchange : How would the U.S.-based storefront in China use the spot market in foreign exchange?

Reviews

Write a Review

Financial Management Questions & Answers

  Straight-line depreciation to zero over six-year life

Which of the following securities is most liquid and has the least default risk? Consider a 6-year project with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life;

  Money market interest rates will rise substantially

Assume your bank is considering the problem of raising $80 million in money market funds to cover a loan request from one of its largest corporate customers. What would you recommend to the fund management department regarding how and where to raise ..

  Required return on the riskier stock exceed

Stock R has a beta of 2.1, Stock S has a beta of 0.55, the expected rate of return on an average stock is 9%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exce..

  Explain the concept of internal rate of return

Explain the concept of internal rate of return (IRR) as it is applied to the management of medical projects. Provide a specific example related to your own work or professional interests.

  Price a 6 month maturity treasury bill to sell for

Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 monthsremaining until maturity.- What price would you expect a 6-month maturity Treasury bill to sell for?

  Calculate the market value of massey-fergusons equity

In 1980 Massey-Ferguson Ltd, a multinational producer of farm machinery, industrial machinery, and diesel engines, lost $225 million, or $12.79 per share. This capped a three year period during which the firm lost almost half a billion dollars. Calcu..

  Depreciated on a straight-line basis

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1704685 on research and development for the new clubs. The plant and equipment required will cost $28597768 and will be depre..

  Beta company is considering buying widget fogger

Beta company is considering buying a widget fogger, It will cost $25000 to purchase and $5000 to install. It will be depreciated SACRS ( 20 % 40 % 15 % 15 % 10 % ) and will last four years before being sold as scrap for $3000. Beta s tax rate is 20 %..

  Use multiple techniques of project evaluation

Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why?

  Managing the firm assets

Managing the firm’s assets includes all of the following EXCEPT:

  Calculate the first payment made by the company

A company has issued floating-rate notes with a maturity of one year, an interest rate of LIBOR plus 125 basis points, and total face value of $50 million.

  What is risk-free interest rate

What is the risk-free interest rate?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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