User Account

All Pages

What is the annual payment to the dealer

Assignment Help Finance Basics
Reference no: EM131394190

You are considering buying a car worth $30,000. The dealer, who is anxious to sell the car, offers you an attractive financing package. You have to make a down-payment of $3,500, and pay the rest over 5 years with annual payments. The dealer will charge you interest at a constant annual interest rate of 2%, which may be different from the market interest rate.

(a) What is the annual payment to the dealer?

(b) The dealer offers you a second option: you pay cash, but get a $2,500 rebate. Should you go for the loan or should you pay cash? Assume that the market annual interest rate is constant at 5%.

Reference no: EM131394190

Questions Cloud

What bloom must do in order to build trust of her employees : This is what Bloom must do in order to build the trust of her employees, which will, in turn, motivate them to be productive and committed workers.
What is net income or loss for rmo manufacturing corporation : Exam: 500523RR - BUS101: What is the net income or loss for the RMO Manufacturing Corporation for the last fiscal year? Which of the following represents the correct sequence of handling physical security threats?
What is the present worth of total revenue : The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3 years. What is the present worth of total revenue at an interest rate of 18% per year?
What was the effect size you used in your calculation : Watch the video lecture and tutorials for this week (see below), and then do a simple sample size calculation based on the type of analysis you'd conduct in your study. You may calculate the effect size from previous literature (from your literatu..
What is the annual payment to the dealer : The dealer offers you a second option: you pay cash, but get a $2,500 rebate. Should you go for the loan or should you pay cash? Assume that the market annual interest rate is constant at 5%.
State concisely the goals of the proposed research : In this final paper you will pull together all of the work you have done in the course toward developing a research concept. This assignment is based on the same guidelines (known as the SF424) you would use if you were to submit a research propos..
Discusses the policy you chose and how it was created : Write a paper of 900 words that discusses the policy you chose and how it was created. Were the claims of cost and benefit credible? Please explain.
Determine which items are o&m vs capital : Determine if there is any information missing. State assumptions when putting together the budget. If there is more revenue than expenses there is a surplus... if less a shortfall. Information may be missing and needs to be identified.
Discuss about the post given below : "More African American Male Teachers are need in preschool and elementery school to teach children, because children are disporpotionately surround by women growing up. May don't have fathers in thier lives, so a male pressence and positive role m..

Reviews

Write a Review

Finance Basics Questions & Answers

  Preparing amortization schedule using effective rate

National Orthopedics Co. issued 9% bonds, dated January 1, with the face amount of $500,000 on January 1, 2011.  Develop an amortization schedule that determines interest at the effective rate each period.

  Why has the trend in bank supervision moved away from focus

Why has the trend in bank supervision moved away from a focus on capital requirements to a focus on risk management?

  Which of the following is the most appropriate reason

Which of the following is the most appropriate reason for an acquiring firm's shareholders to prefer using stock financing for acquisitions?

  Explain whether the following statement is true or false

Explain whether the following statement is true or false: $100 a year for 10 years is an annuity; but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However, the second series contains an annuity.

  What are the differences between a primary offering

Describe an initial public offering (IPO). What are the differences between a primary offering and a secondary offering?

  What are the option''s market value and the price of the stoc

The exercise price on one of Flanagan Company's options is $15, its exercise value is $22, and its premium is $5. What are the option's market value and the price of the stock?

  What is the price paid to the bondholder

A 6.3 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

  What will the account balance be after 1 year

Assume a firm makes a $2,500 deposit into its money market account. If this account is currently paying 0.7% (yes, that’s right, less than 1%!), what will the account balance be after 1 year?

  Compute the duration for bond c

Compute the duration for bond C, and rank the bonds on the basis of their price volatility. The current rate of interest is 8%, so the prices of bonds A and B are $1,000 and $1,268 respectively.

  You are thinking about buying a new car the sticker price

you are thinking about buying a new car. the sticker price is 22000 and you have 3000 to put towards the down payment.

  What is the expected price of this bond

Delagold Corporation is issuing a zero-coupon bond that will have a maturity of fifty years. The bond's par value is $1,000, and the current yield on similar bonds is 7.5%. What is the expected price of this bond, using the semiannual convention?

  Expected return on the market

The risk free rate is 5% and the expected return on the market is 12%. The company's corporate tax rate is 40%. What return do investors in the bonds expect to receive?

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