Monthly payment if she decides to take bank loan

Assignment Help Financial Management
Reference no: EM131839870

Mary plans to buy a new car that would cost $25,000. After she consulted with her bank, she determined that she can get a $25,000 car loan with annual interested rate at 6% compounded monthly for the option of 4-year 48 monthly payments. (a) What is her monthly payment if she decides to take the bank loan? (b) If the car dealer offers Mary an option of $500 monthly payments for 48 months with a $5,000 down payment, which option does Mary want to take, get the loan from her bank or from the car dealer? Why?

Reference no: EM131839870

Questions Cloud

What pressures does the manager face : How does the organization's culture support this sort of behavior? What pressures does the manager face? What pressures does the subordinate face?
Analyze the operations at WRU : Widgets 'R Us (WRU) is a medium-sized firm specializing in the design and manufacturing of quality widgets. The market for widgets has been stable.
Effective way of hedging receivables : Which of the following is not an effective way of hedging receivables?
What messages are being conveyed about Wegmans : Wegmans has been consistently voted one of the 100 best companies to work for in the United States by Fortune magazine.
Monthly payment if she decides to take bank loan : Mary plans to buy a new car that would cost $25,000. What is her monthly payment if she decides to take the bank loan?
What is minimum price rachel would need to receive for car : Rachel purchased a $19,000 car three years ago using a 10 percent, 6-year loan. What is the minimum price Rachel would need to receive for her car?
Discuss importance of assessing stakeholder expectations : Go to the Web site of projectstakeholder's and analyze some of the case studies found on the Web site. What do these cases suggest about the importance.
Weaknesses of organization project management activities : Go to a corporate Web site of your choice and access the organizational chart. What form of organization does this chart represent: functional, project.
Show jack cash flow in this five-year period : Draw a cash flow diagram to show Jack’s cash flow in this five-year period.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the duration if the yield to maturity

Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.7%. What is the duration if the yield to maturity is 10.7%?

  What is the expected price-earnings ratio

DEF Ltd paid $10 of cash dividend to its shareholders. The dividend is expected to grow at 25% per year for the next five years and then settle down to 5% per year indefinitely. Also, compute the current stock price (P0) of the company? Regarding to ..

  Evaluate the advice kate received from her coworkers

Evaluate the advice Kate received from her coworkers

  Simulations assist in making financial investment decisions

How do sensitivity analysis, scenario analysis, decision tree analysis, and computer simulations assist in making the financial investment decisions?

  About rat race home security

what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 4.6 percent?

  Reject the project with the cash flows

Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent. Time: 0 1 2 3 4 5 Cash flow: -83 -83 0 118 93 68

  What is project payback

Project L costs $50,000, its expected cash inflows are $8,000 per year for 12 years, and its WACC is 13%. What is the project's payback?

  One-time cost of home ownership

One can lower insurance premiums by doing all of the following except. one-time cost of home ownership.

  How many rights must be submitted to acquire one new share

How many rights must be submitted to acquire one new share?

  About the trend analysis

Using a 3-year trend analysis, how has Marriott’s position changed in the areas of: a) Debt Management (i.e., LT debt ratio, TIE) and b) Profitability (i.e., ROE, ROA)? Be sure to interpret your ratio analysis and explain the reasons for your conclus..

  Coupon bond-compute the exact price change

You just purchased a coupon bond with face value $1000, 6% coupons, and three years remaining to maturity. Assume that all market interest rates are 7 %. (a) What is the duration of this bond? Compute the exact price change (using the present value f..

  What is the inventory turnover-days sales in inventory

The Green Corporation has ending inventory of $482,700, and cost of goods sold for the year just ended was $3,934,005. What is the Inventory Turnover? What is the days' sales in inventory?

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