What interest rate is your cousin really going to pay

Assignment Help Financial Management

Reference no: EM13919567

Your cousin wants to buy a car but he really can’t afford it. He needs a loan of $22,000. The finance manager at the dealership offers him something like a loan in which your cousin will get the $22,000 and will pay $413 per month for the next 60 months with an additional payment of $3,000 (which the car will surely be worth!) in the 60th month. What interest rate is your cousin really going to pay? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer

Reference no: EM13919567

Questions Cloud

What is the net present value of the project : Japan has improved quality dramatically over the last 30 years. Which of the following is not one of the reasons for this improvement?

Writing and authorization of the constitution : The system of federalism was instituted with the writing and authorization of the Constitution in 1787. In dividing power between states and the national government, federalism has undergone challenges to the placement of power.

Warrants outstanding with an exercise price : The Zecor Company has warrants outstanding with an exercise price of $45. The warrants have a market price of $21. Zecor's common stock is currently selling at $52 per share. How many shares of stock can be purchased with this warrant? Show work.

What interest rate is your cousin really going to pay : Your cousin wants to buy a car but he really can’t afford it. He needs a loan of $22,000. The finance manager at the dealership offers him something like a loan in which your cousin will get the $22,000 and will pay $413 per month for the next 60 mon..

How the restaurant should allocate its advertising budget : Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure.

Types of schizophrenia : Q1. What are all of the types of schizophrenia? Q2. What are the two types of Catatonic Schizophrenia?

Inflation-recession-high interest rates are economic events : Inflation, recession, and high interest rates are economic events that are best characterized as being-systematic risk factors that can be diversified away. company-specific risk factors that can be diversified away. among the factors that are respon..

Calculating cost of equity- portfolio weights : Calculating Returns: A stock with an initial price of $55 per share paid a dividend of $1.75 per share throughout the year, with an ending price of $59. Calculate the percentage total return of the stock.

User Account

All Pages