Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=$2500[1-(1.08)^-6]/0.08
=$2500*4.622879664
which is equal to
=$11557.20(Approx).
A smooth used-car salesman who smiles considerably is offering you a great deal on a "preowned"...
A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 8 annual payments of $2,600 this beautiful 1998 Honda Civic can be yours." If you can borrow money at 7%, what is the price of this car? Assume the payment is made at the end of each year.
Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 4 annual payments of $2800, this beautiful 1998 Honda Civic can be yours." A) If you can borrow money at 7%, what is the price of this car? Assume the payment is made at the end of each year.
Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 7 annual payments of $2 comma 800, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year.
Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 4 annual payments of $2,700, this beautiful 1998 Honda Civic can be yours if you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year. If you can borrow money at 8%, what is the price of this car? (Round to the nearest cent.)
Please need help Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 6 annual payments of $2,800, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year. If you can borrow money at 8%, what is the price of this car? $ (Round...
True or False: Annuities are unequal cash flows that go on for a finite period of time. True or False: We can determine which “PMT” we’re being asked to solve for by noting what the problem provides in terms of r and n. True or False: "When given the annual withdrawals desired during the retirement period, the FVA tells us the amount we should have accumulated by the time we begin the retirement period. True or False: Given the...
Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a new Honda Civic: "Monthly payments of $400.40 for the next 60 months and this beauty can be yours!" The sticker price of the car is $18,000. If you bought the car, what interest rate would you be paying in both APR and EAR terms? What is the amortization schedule of the first six payments? If you bought the car, what monthly interest rate would you be...
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Kate and Ken are in the market for a vacation place. They find a small but pleasant condo in Orlando listed at $478,000. They decide that now is not the right time to buy and that they will wait five years. The condos in Orlando appreciated each year at 2.5%, and they want to know what a similar condo will sell for in five years. Please help them and find it out. (3 points) Terry would like to make a...
Assume that you want to borrow $800,000 in order to purchase a new car. As you are a fresh graduate, you can only find one lender, Come-On Finance Limited, willing to grant you an auto loan. In fact, a friend of yours can also give you a helping hand. You are now comparing the following loans under different terms offered by the two parties. Loan 1: Borrow $800,000 from Come-On Finance as an add-on 4% simple interest loan, with quarterly...