User Account

All Pages

What is the actual interest rate the dealership is charging

Assignment Help Business Management
Reference no: EM132796591

You are considering purchasing a vehicle. You can buy it at the local dealership which will finance the purchase, or you can purchase it on Craigslist, but you have to pay cash for it. The local dealer has offered you the following "special deal."

Face value 20,000

Coupon rate 1.0%

Market rate ???

Term of note 5

You can buy it on Craigslist for the following.

Fair value of the vehicle 16,000

Assuming equal annual payments of principal and interest, what is the actual interest rate the dealership is charging?

Reference no: EM132796591

Questions Cloud

Record the transfer of equity on the partnership books : Profits and losses for Red is 60% and 40% for White, respectively. Record the transfer of equity on the partnership books on January 1, 20CY
Calculate the initial-operating and terminal cashflows : a. Calculate the initial, operating and terminal cashflows. b. Calculate the NPV and IRR. Comment if the project should be accepted or not.
Incentive problems within investment practices : Explain how private equity has contributed to solving the sorting and incentive problems within investment practices.
What would be a reasonable value for kd : During the most recent fiscal year, KD Industries had revenues of $400 million and earnings of $30 million. KD has filed a registration statement
What is the actual interest rate the dealership is charging : Assuming equal annual payments of principal and interest, what is the actual interest rate the dealership is charging?
What are ethics theories that describe the ethical dilemmas : What are some ethics theories that describe the ethical dilemmas, regulatory and legal implications of the above situations from the perspective of John
Write an evaluation of current systems operation : Prepare a 4- to 5-page information systems review. Include the following: An evaluation of current systems operations and maintenance practices.
Compute the total cost per ton of ore mined : Mareos Company purchased for $3,800,000 a mine estimated to contain 3,000,000 tons of ore. Compute the total cost per ton of ore mined
Why an independent auditor reports on financial statements : Which best describes the reason why an independent auditor reports on financial statements? A poorly designed internal control system may be in place.

Reviews

Write a Review

Business Management Questions & Answers

  What specific role does logistics play in supply chain

Globalization and technology developments have led to some significant changes in the global economy.

  What is percent markup on cost

Irene Westing bought a desk for $800 from an office supply house. She plans to sell the desk for $1,200. What is Irene's dollar markup?

  Describe the five dimensions of culture proposed

Describe the five dimensions of culture proposed by Hofstede. What are the managerial implications of these dimensions? Do you think these dimensions are still valid and why? Compare the findings with those of Troompenaars and the GLOBE project team?

  Southeast pennsylvania transit authority

Assume that the price of a ride on the Southeast Pennsylvania Transit Authority (SEPTA) is $2 and that 1 million people ride SEPTA each day.

  Misunderstandings in communicationthink of two

misunderstandings in communicationthink of two misunderstandings you experienced when communicating with someone else

  Methodology used by author author findings and conclusions

Methodology used by the author Author's Findings and conclusions. Identify and explain the corporate strategy used. Business strategy used by the company

  Cycles of reflection and reorganization

Continuous change. Organizations are expected to continue the cycles of reflection and reorganization.

  Furniture design and manufacturing company

One of your best friends is asking you for advice. She is starting a furniture design and manufacturing company. She wants to know if she should outsource manufacturing of her furniture to Asia, outsource manufacturing to Canada, or keep manufactu..

  Has technology also affected the ethics of purchasing

Discuss how technology has impacted the legal aspects of the purchasing process. Has technology also affected the ethics of purchasing?

  Identify a high power-high interest stakeholder

Imagine you have completed a stakeholder analysis and you identify a high power, high interest stakeholder with strong objections to change, even

  The keller and alsdorf text

The Keller and Alsdorf text, describe 5 things that you found to be most important from the text, list anything that you disagree with and why,

  Economics contribute to sustainable futures

What do they offer in terms of, for instance, understanding the economy's relationship with nature, individual behavior, theory of production.

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