Year 1: $500,000
Year 2: $525,000
Year 3: $550,000
Year 4: $560,000 (data continued next page)
Year 5: $575,000
Year 6 and thereafter: $580,000
Based upon you investment return requirements, should you purchase the apartment building?
Year 1: $575,000
Year 2: $600,000
Year 3: $640,000
Year 4: $650,000
Year 5: $670,000
Year 6 and thereafter: $695,000
Based upon your investment return requirements, should you purchase the apartment building (the seller has not adjusted their asking price despite the potential building moratorium)?
BMW Purchases | Sally | |
PMT | $ 735.00 | $ 735.00 |
Nper | $ 60.00 | $ 60.00 |
Rate | 0.54% | 0.46% |
PV | 0 | 0 |
Type | 0 | 0 |
Future Value = FV = value of car = FV(rate,per,-pmt,-pv,type) | $ 51,944.29 | $ 50,626.89 |
The difference in “value” between your BMW purchase and Sally’s is because of FICO credit rating . A FICO is a type of credit score based on payment history, current level of indebtedness, types of credit used, length of credit history and new credit accounts. | ||
Sally Got better deal beause of its better credit score. She should buy the car because its interest rate. |
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW? After purchasing the BMW, you tell Sally about the great deal you received...
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states the interest rate on this loan will be 6.5% per annum or .5416% monthly. At the time you sign the loan documents what “value” are you paying for the BMW?
You have decided to buy a new BMW 3281C convertible which fully loaded the dealer will sell you for $40,000 with your trade in. The financing that the dealer is offering is as year loan at 6.5% (APR) and the first loan payment is due one-month from now. What is your monthly payment if payments are due at the beginning of the month, rather than at the end of the month. (8 points) 5775.08 5778.43 52563.16 5782.65
2. You are considering buying a new car from a local dealer (Dealer 1) for $30,000. Dealer 1 will finance the entire purchase price at 6% interest over 5 years. Interest is compounded monthly and you must make monthly payments. What is the most you would be willing to offer another dealer (Dealer 2) for the same car who is offering a financing plan with a 2% interest rate over 5 years? Hint: If the loan payments are the same...
You want to purchase a brand new Electric vehicle that costs $ 50,000. Dealer A offers you the car for a cash purchase immediately if you pay only $ 45,000. Dealer B offers you a no cost EMI of $ 1000 for 50 months. a. Suppose you can purchase it by withdrawing from an investment you already invested in that yields 5% yearly, what option would you choose? b. Suppose you can purchase it using your credit card, and unpaid...