Reference no: EM132996770
Questions -
Q1. Dealer A offers you a car with monthly payments of $ 330 for 60 months, starting 1 month from today.
Dealer B offers you the same car for 12 quarterly payments of $1,500 each, starting 1 quarter from today.
Assume that the car costs $15,000.
What is the Effective Annual Rate (EAR) for Dealer A?
What is the Effective Annual Rate (EAR) for Dealer B?
Q2. You want to buy a house in your dream city 30 years from today. Assume that the house will cost you $2,000,000 (at t=30 years). You also require annual maintenance of $100,000 for 20 years after that, i.e. from the end of year 31 to the end of year 50.
You plan to make equal monthly deposits for the next 30 years.
Assume that the interest rate is 5.00% per year, compounded monthly?
How much money do you need in 30 years to fulfill your goal?
What monthly deposits do you need to make for the first 30 years, in order to fulfill this goal?
|
Calculate the net absolute return
: The company uses a linear depreciation system, and the residual value of the machine is € 25,000. Calculate the net absolute return
|
|
What is the process capacity per hour
: The first resource has a processing time of 5 minutes per unit and one employee doing the operation. What is the process capacity per hour
|
|
Explain the shareholders equity section
: The assignment is that your Company has $1,000,000 to make an investment. Explain the shareholders' equity section of the consolidated balance sheet
|
|
How much should you deposit today in a fund
: If you want to have $8,750.00 in 5 years and 3 months, how much should you deposit today in a fund that is earning 7.44% compounded quarterly
|
|
What is the effective annual rate for dealer
: Dealer A offers you a car with monthly payments of $ 330 for 60 months, starting 1 month from today. What is the Effective Annual Rate (EAR) for Dealer A
|
|
What effective rate of return was the investment earning
: Question - If a $32,000 investment grew to $48,005 in 6 1/2 years of quarterly compounding, what effective rate of return was the investment earning
|
|
What is the NPV and should you start the COVset project
: If your company has a discount rate of 8% compounded quarterly, what is the NPV and should you start the COVset project
|
|
What will be the amount of goodwill
: Assuming Tik Co. paid P15,000 cash to acquire 100% of the common stock of Tok, what will be the amount of goodwill that would be shown
|
|
What is the appropriate treatment in the financial report
: In accordance with AASB110, what is the appropriate treatment in the financial report for the year ended 30th June 2020
|