User Account

All Pages

Present value of the car payments

Assignment Help Finance Basics
Reference no: EM131097079

A car dealership offers you no money down on a new car. You may pay for the car for 4 years by equal monthly end-of-the-month payments of $386 each, with the first payment to be made one month from today. If the discount annual rate is 8.40 percent compounded monthly, what is the present value of the car payments?

Round the answer to two decimal places.

Reference no: EM131097079

Questions Cloud

How can psychological research and theories : Prescription Drug Abuse Among Rural Teens: How can psychological research, theories, and perspectives be used to reduce prescription drug abuse among rural teens?
What is the purpose of regression : What is the purpose of regression
Determine the probability that the test will conclude cost : Determine the probability that the test will conclude the cost of owning a car in Los Angeles is not more than 10% less than in Detroit when in fact the average cost is $10,361.
Estimate of the current stock price : There are 7.1 million shares of stock outstanding and investors require a return of 13 percent on the company's stock. The corporate tax rate is 39 percent. a. What is your estimate of the current stock price?
Present value of the car payments : If the discount annual rate is 8.40 percent compounded monthly, what is the present value of the car payments?
Determine the values of each one of these r.v.''s : Determine the values of each one of these r.v.'s, as well as the values of the sum X1+X2+X3+X4.
Cost of equity after the switch : The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.
Find the linear equation expressing the system''s book value : Find the linear equation expressing the system's book value
Shareholders equity account : Sankey, Inc., has current assets of $5,125, net fixed assets of $25,600, current liabilities of $4,500, and long-term debt of $9,900. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm?

Reviews

Write a Review

Finance Basics Questions & Answers

  You are out shopping for a new car you have found a toyota

you are out shopping for a new car. you have found a toyota sienna priced at 34400. the dealer has told you that if you

  You want to withdraw 3000 once year at the begining of each

you want to withdraw 3000 once year at the begining of each year for 5 years. r8. how much money do you need to

  Talbot industries is considering an expansion project the

talbot industries is considering an expansion project. the necessary equipment could be purchased for 9 million and the

  Payroll accrual at the end of the month

Belvedere Inc. has an annual payroll of $52 million. The firm pays employees every two weeks on Friday afternoon. Last month, the books were closed on the Tuesday after payday. How much is the payroll accrual at the end of the month?

  What is the inventory turnover ratio

You have a quick ratio of 2.00x; 31500 in cash; 17500 in A/R; some inventory; total current assets of $70,000;& total current liabilities of $24,500. Annual sales reported $200,000.

  Comparing the relative position of multiple offerings

This is a simple but effective visual mechanism for comparing the relative position of multiple offerings from competing sources.

  What must the coupon rate be on the bonds

Kiss the Sky Enterprises has bonds on the market making annual payments, with 18 years to maturity, and selling for $780. At this price, the bonds yield 7.3 percent. What must the coupon rate be on the bonds?

  What is the effective annual percentage cost

A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

  What are some of the positive and negative impacts

What are some of the positive and negative impacts of this capital budgeting decision? What can the firm do mitigate some of the negative impacts?

  Distinguish between international funds and global funds

Distinguish between international funds, global funds, worldwide funds, and oversea funds and determine how international funds have been performing, in the U.S. dollar terms, relative to mutual funds offering purely domestic portfolios

  Barbow after-tax weighted average cost of capital

Calculate Barbow's after-tax weighted average cost of capital, using the data in the balance sheet above.

  How much must he deposit at the end of each year

Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end - of -year deposits over the next 20 years. If Zheng Sen can earn 10 percent on his investments, how much must he deposit at the end of each year?

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