What is the constant dollar value

Assignment Help Business Economics

Reference no: EM13854771

You are purchasing an automobile priced at $29,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly instalments for seven years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 6% compounded monthly?

Reference no: EM13854771

Questions Cloud

Toby is indifferent between the bundles : Toby is indifferent between the bundles (9, 3) and (5, 5). When Toby is at (9, 3), he would be willing to give up one unit of y if he were to receive two units of x. If Toby is at (5, 5), he would be willing to give up four units of x if he were to r..

Write the equation for the companys isocost : Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the book keeping tasks is done manu..

A 1.0 mole sample of an ideal monatomic gas : A 1.0 mole sample of an ideal monatomic gas at 10.0 °C undergoes a reversible adiabatic expansion from 2.94 to 3.68 L. Determine ΔT, ΔU, ΔS, w, and q.

The broker has an initial margin requirement : Let P be the price of a stock. The broker has an initial margin requirement of m0, where 0

What is the constant dollar value : You are purchasing an automobile priced at $29,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly instalments for seven years. What is the constant dollar value (value at the time of financing) of the 36th payment..

What is the amount available after the last payment is made : You are going to make payments of $100 each year for the next 15 years. For the first five years (1-5) the interest rate is 8% yearly. For years 6-10 the rate is 8% compounded quarterly. For years 11 – 15 the interest is 8% compounded monthly. What i..

What is the equal amount in actual dollars : A couple wants to save for their daughter’s college expense. The daughter will enter college 10 years from now and she will need $45,000, $46,000, $47,000 and $48,000 in actual dollars for 4 school years. Assume that these college payments will be ma..

What would be the monthly payment to pay off the loan : A building is priced at $100,000. If a down payment of $30,000 is made, what would be the monthly payment to pay off the loan in 36 months? Interest is charged at a rate of 5%, compounded monthly.

Interest rate and compounding frequency remain the same : Suppose you borrowed $10,000 at an interest rate of 12%, compounded quarterly over 36 months. At the end of the first year (after 4 payments), you want to negotiate with the bank to pay off the remainder of the loan in 4 equal semi-annual payments. W..

User Account

All Pages