1- Your rich aunt wants to finance four years of college for you. Assuming an annual...
1- Your rich aunt wants to finance four years of college for you. Assuming an annual cost of $19,000, how much money must she put in your college fund now to cover the entire cost of your college education if the fund earns 6% per year.
2- You just bought a used car for $7,000 with no down payment using dealer financing at 5% APR compounded monthly. If you make monthly payments of $500, how many months will it take you to payoff the loan?
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1- Your rich aunt wants to finance four years of college for you. Assuming an annual...
1. You set up a college fund in which you pay $2500 each year at the...
1. You set up a college fund in which you pay $2500 each year at the end of the year. How much money will you have accumulated in the fund after 10 years, if your fund earns 13% compounded annually? Your Answer: 2. Lauren knows she can afford to make monthly payments of $300 for 36 months. How much will the bank lend her today on a 3% APR car loan in exchange for her promised monthly payments? Your Answer:...
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmi...
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $35,000. This balance can be financed by the auto dealer at 2.3% APR (compounded monthly) and repaid over 60 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 9.1% (compounded monthly) over 60 months. Determine...
TIME VALUE OF MONEY 32. Future Value of si John and Mary Rich invested $15,000 in...
TIME VALUE OF MONEY 32. Future Value of si John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18 birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account? A. $42,755.32 B. $30,345.27 C. $35,233.89 D $37,678.11 33. Future Value of Annuity of Si John and Char...
2. You are considering buying a new car from a local dealer (Dealer 1) for $30,000....
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...
(25 Points) 2. You have decided to purchase a new car and trade-in your old car....
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...
7. + 1/2 points Previous Answers CraudColAlg6 1.1.EX.018.MI. 6/100 Submissions Used My Notes Ask Your Teacher...
7. + 1/2 points Previous Answers CraudColAlg6 1.1.EX.018.MI. 6/100 Submissions Used My Notes Ask Your Teacher You are buying a new car, and you plan to finance your purchase with a loan you will repay over 48 months. The car dealer offers two options: either dealer financing with a low APR, or a $2000 rebate on the purchase price. If you use dealer financing, you will borrow $14,000 at an APR of 3.3%. If you take the rebate, you will...
Suppose that you own a local auto dealership, Carmen and Rodrigo’s Sales (CARS). Your dealership will...
Suppose that you own a local auto dealership, Carmen and Rodrigo’s Sales (CARS). Your dealership will finance a new car purchase at an APR of 13%, compounded monthly. The terms of the financing are monthly payments of $251 for five years. The first payment is due one month after the buyer purchases the vehicle. How much of the purchase price would the buyer be financing with the loan from your dealership?
Please don't use excel to solve the problems and show your work. 16.1. (a) Calculate the...
Please don't use excel to solve the problems and show your
work.
16.1. (a) Calculate the amount realized at the end of 7 years through annual deposits of $1000 at 10 percent compound interest. (b) What would the amount be if interest were compounded semiannually? 16.2. A young woman purchases a used car. After down payment and allowances, the amount to be paid is $8000. If money is available at 10 percent, what is the monthly payment to pay off...
35. Your knowledge of TVM has made you quite the negotiator. Car dealers fear you. While...
35. Your knowledge of TVM has made you quite the negotiator. Car dealers fear you. While purchasing a $25,000 car, the car dealer wants to finance it for you at 6% APR but you know you can get a 5% APR loan from your bank. If the terms of both loans are four years with monthly payments and compounding, how much less is your monthly payment as financed with the bank? A. $11.39 B. $13.67 C. $16.48 D. $18.01 E....
Suppose you want your daughter's college fund to contain $100,000 after twelve years. If you can...
Suppose you want your daughter's college fund to contain $100,000 after twelve years. If you can get a fixed APR of 6.7% compounded monthly, how many dollars should you deposit at the end of each month? Round answer to the nearest dollar.
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $35,000. This balance can be financed by the auto dealer at 2.3% APR (compounded monthly) and repaid over 60 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 9.1% (compounded monthly) over 60 months. Determine...
TIME VALUE OF MONEY 32. Future Value of si John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18 birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account? A. $42,755.32 B. $30,345.27 C. $35,233.89 D $37,678.11 33. Future Value of Annuity of Si John and Char...
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...
7. + 1/2 points Previous Answers CraudColAlg6 1.1.EX.018.MI. 6/100 Submissions Used My Notes Ask Your Teacher You are buying a new car, and you plan to finance your purchase with a loan you will repay over 48 months. The car dealer offers two options: either dealer financing with a low APR, or a $2000 rebate on the purchase price. If you use dealer financing, you will borrow $14,000 at an APR of 3.3%. If you take the rebate, you will...
Please don't use excel to solve the problems and show your
work.
16.1. (a) Calculate the amount realized at the end of 7 years through annual deposits of $1000 at 10 percent compound interest. (b) What would the amount be if interest were compounded semiannually? 16.2. A young woman purchases a used car. After down payment and allowances, the amount to be paid is $8000. If money is available at 10 percent, what is the monthly payment to pay off...
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