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What is the company annual payment

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Problem a) A local car dealership leases a high-end automobile for $6,000 annually. At the end of the five-year lease, the car can be sold for $25,000. If the dealership's expected return is 13 percent, how much is this lease worth?

Problem b) A small company borrows $600,000 from their local bank at a rate of 8%. The loan payments are made annually and last for 10 years. What is the company's annual payment?

Problem c) A recent graduate of IWU's MBA program has decided to reward themselves by purchasing a new Ford Mustang at a cost of $32,750. The interest rate on a 6-year loan is 9%. What will be the montly payment?

Reference no: EM132740925

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