Jake just bought a car for $15 000 and paid in cash. Calculate Jake's opportunity cost...
Jake just bought a car for $15 000 and paid in cash. Calculate Jake's opportunity cost as "funds tied up in the car" if you know that otherwise it was possible to invest the full amount of the money at 8% annual interest rate compounded monthly for five years.
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Jake just bought a car for $15 000 and paid in cash. Calculate
Jake's opportunity cost...
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it...
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it as follows: 1/3 down payment, the balance to be paid in 36 equal monthly payments, the first payment due February 1, an annual interest rate of 9% compounded monthly. a. What is the amount of LaQuita's monthly payment b. During the summer LaQuita made enough money to pay off the entire balance due on the car as of October 1 (October 1 payment plus...
2.46 C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000...
2.46
C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000 000 collectable in 10 yearly installments of S100 000 starting today. Why is this prize not really S1 000 0002 What is it really worth today if money can be invested at 10 percent annual interest, compounded monthly? Use a spreadsheet to construct a table showing the present worth of each installment, and the total present worth of the prize. Suppose in Problem 2.45...
An engineering student bought a car at a local used car lot. Including tax and insurance,...
An engineering student bought a car at a local used car lot. Including tax and insurance, the total price was $15,000. He is to pay for the car in 13 equal monthly payments, beginning with the first pay- ment immediately (the first payment is the down payment). Nominal interest on the loan is 12%, com- 4-38 monthly. After six payments he decides to sell the car. A buyer agrees to pay off the loan in full and to pay the...
1. You won $100 000 in a lottery and you want to set some of that...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
39. You bought a painting 10 years ago as an investment. You originally paid for $484,050,...
39. You bought a painting 10 years ago as an investment. You originally paid for $484,050, what was your annual return on investment? A) 47% B) 47% C) 1996 D) 12.8% Answer: $85,000 for it. If you sold it 40. What is the present value of S12.500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $10. A) $5,790 B) $11,574 C) $9,210 D) $17,010 Answer il. You wish...
Need help, please show work for solutions. 1.) An investor just invested $10,000 in an investment that is expected to ea...
Need help, please show work for solutions. 1.) An investor just invested $10,000 in an investment that is expected to earn a 6% interest rate. Assuming the 6% annual return is realized, what will be the value of the investment at the end of 25 years? 2.) If you deposit $45,000 into a 5-year CD today earning 4% interest compounded quarterly, what would be the account balance be at the end of 5 years? 3.) A 22-year old college student...
Ms. Cressida bought a car for $48,000 exactly three years ago. After making an up-front equity...
Ms. Cressida bought a car for $48,000 exactly three years ago. After making an up-front equity payment of $5,000, she borrowed the rest of the car value from her bank in the form of a five-year loan. She negotiated a loan rate of 2.5% APR with semi-annual compounding. She makes loan payments of an equal dollar amount every two weeks (i.e., biweekly), and her first loan payment was due two weeks after she signed the loan contract. What is Cressida’s...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made a...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made at the end of each year). If Karen invests each payment in an account that earns 4.6% interest, compounded annually, how much will she have at the end of 8 years? Preview After Karen wins her lawsuit, she is approached by a structured settlement company. They offer her $48,500, paid immediately, in return for her annual lawsuit payments. How...
Please read the questions carefully. Please draw the cash flow diagrams and explain the steps that...
Please read the questions carefully. Please draw the cash flow diagrams and explain the steps that you are going to approach to solve the problems then solve the problem. Show the details in solving the problems. Please write legible hand writing, otherwise there is a deduction from your grade 10 points Missing Cash Flow Diagram is deductible points equal to 10% of the total points for each question. Question - 1 A series of equal semiannual cash flows starts with...
Show all work please. Assume a large health system has just approved a $355,000 annual (per...
Show all work please.
Assume a large health system has just approved a $355,000 annual (per year) bonus to retain its top cardiac surgeon. Assume that $355,000 will be paid to the surgeon as a bonus at the end of each year that he stays, up to ten years. The healthcare system wants to invest a lump sum now in order to have enough money to cover the bonuses over the ten-year period. Assume the healthcare system can earn a...
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it as follows: 1/3 down payment, the balance to be paid in 36 equal monthly payments, the first payment due February 1, an annual interest rate of 9% compounded monthly. a. What is the amount of LaQuita's monthly payment b. During the summer LaQuita made enough money to pay off the entire balance due on the car as of October 1 (October 1 payment plus...
2.46
C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000 000 collectable in 10 yearly installments of S100 000 starting today. Why is this prize not really S1 000 0002 What is it really worth today if money can be invested at 10 percent annual interest, compounded monthly? Use a spreadsheet to construct a table showing the present worth of each installment, and the total present worth of the prize. Suppose in Problem 2.45...
An engineering student bought a car at a local used car lot. Including tax and insurance, the total price was $15,000. He is to pay for the car in 13 equal monthly payments, beginning with the first pay- ment immediately (the first payment is the down payment). Nominal interest on the loan is 12%, com- 4-38 monthly. After six payments he decides to sell the car. A buyer agrees to pay off the loan in full and to pay the...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
39. You bought a painting 10 years ago as an investment. You originally paid for $484,050, what was your annual return on investment? A) 47% B) 47% C) 1996 D) 12.8% Answer: $85,000 for it. If you sold it 40. What is the present value of S12.500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $10. A) $5,790 B) $11,574 C) $9,210 D) $17,010 Answer il. You wish...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made at the end of each year). If Karen invests each payment in an account that earns 4.6% interest, compounded annually, how much will she have at the end of 8 years? Preview After Karen wins her lawsuit, she is approached by a structured settlement company. They offer her $48,500, paid immediately, in return for her annual lawsuit payments. How...
Please read the questions carefully. Please draw the cash flow diagrams and explain the steps that you are going to approach to solve the problems then solve the problem. Show the details in solving the problems. Please write legible hand writing, otherwise there is a deduction from your grade 10 points Missing Cash Flow Diagram is deductible points equal to 10% of the total points for each question. Question - 1 A series of equal semiannual cash flows starts with...
Show all work please.
Assume a large health system has just approved a $355,000 annual (per year) bonus to retain its top cardiac surgeon. Assume that $355,000 will be paid to the surgeon as a bonus at the end of each year that he stays, up to ten years. The healthcare system wants to invest a lump sum now in order to have enough money to cover the bonuses over the ten-year period. Assume the healthcare system can earn a...
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