3. Abdulbaasit would like to buy a new car that costs $ 30000. The dealership offers to finance the car at 2.4% compounded monthly for 5 years with monthly payments. Instead, Abdulbaasit could get a 5-year loan from his bank at 5.4% compounded monthly and the dealer will reduce the selling price by $3000 when Abdulbaasit pays immediately in cash. Which is the best way to buy a car? (Use the TVM Solver) Show all the variable entries used in the TVM Solver.

3. Abdulbaasit would like to buy a new car that costs $ 30000. The dealership offers to finance the car at 2.4% compounded monthly for 5 years with monthly payments. Instead, Abdulbaasit could get a 5-year loan from his bank at 5.4% compounded monthly and the dealer will reduce the selling price by $3000 when Abdulbaasit pays immediately in cash. Which is the best way to buy a car? (Use the TVM Solver) Show all the variable entries used in the TVM Solver.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you want to buy a new car that costs $32,900. You have no cash-only your old car, which is worth $4000 as a trade-in The dealer says the interest rate is 5% add-on for 5 years Find your total cost, for the new car plus interest The total cost, for the new car plus interest, is $ (Simplify your answer.) GEOTE
10.) Jojuan wants to buy a used for 12,000 dollars but can only afford 200 dollars. What interest rate would he need to find to be able to afford the car, assuming the loan is for 60 months?
Your old car costs you $300per month in gas and repairs. If you replace it, you could sell the old car immediately for $2,000. To buy a new car that would last seven years, you need to pay out $12,200 immediately. Gas and repairs would cost you only $100 per month on the new car. Interest is 9%compounded monthly. Should you buy a new car (Alternative 1) or keep your old car (Alternative 2)? Compute the net present value of each alternative and determine which alternative should be accepted or rejected according to the net present value criterion. What will be the net present value for Alternative 1 (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) What will be the net present value for Alternative 2. (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) What will be the preferred alternative.
a You want to buy house that costs $170,000. You have $17,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $153,000. However, the realtor persuades the seller to take $153,000 mortgage called a seller take-back mortgage) at a rate of 8% provided the loan is paid off in full in 3 years. expect to inhent $170,000 in 3 years, but light now all you have is $17,000 and you can afford to make payments of no more than $19,000 per year given your salary. (The loan would call for monthly payments, but assume things.) end-of-year annual payments to simplify p a) If the loan was amortized over 3 years, how large would each annual payment be? Round your answer to the nearest cent b) If the loan was amortized over 30 years, What would each payment be? Round your answer to the nearest cent. C) To satisfy the seller, the 30-year mortgage loan would be written as a balloun note, which means at the end of the third year, you would have to make the
You want to financed a car that advertised at $31318 but you don't have money. However after checking your credit the dealer offered you that if you pay $571 per month for 6 years, they will give you the car. What is the total amount you will have to pay to the dealer if you finance the car? Write the answer without the "$" sign. Add your answer I
3
Suppose that Cougar Autos offers an "easy payment" scheme on a new Honda of $4,000 a year, paid at the end of each of the next four years, with no cash down. What is the car really costing you? The interest rate is 6% Show EXCEL formula.
John is looking for a new car. He has a down payment of $1,000.00 and wants to pay $350.00 per month for 5 years. The best deal he found for an amortized loan is his local bank, at a rate of 2.65%. What is the highest price car he should consider buying?
= You would like to buy a house that costs $350,000. You have $55,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $23,060 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $295,000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be? The balloon payment is $ (Round to the nearest cent.)
You want to buy a house that costs $170,000. You have $17,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $153,000. However, the realtor persuades the seller to take a $153,000 mortgage (called no more than $17,000 per year given a seller take-back mortgage) at a rate of 10%, provided the loan is paid off in full in 3 years. You expect to inherit $170,000 in 3 years, but right now all you have is $17,000, and you can afford to make payments your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.) a. If the loan was amortized over 3 years, how large would each annual payment be? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Could you afford those payments? -Select- b. If the loan was amortized over 30 years, what would each payment be? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Could you afford those…
You want to buy a house that costs $280,000. You have $28,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $252,000. However, the realtor persuades the seller to take a $252,000 mortgage (called a seller take-back mortgage) at a rate of 6%, provided the loan is paid off in full in 3 years. You expect to inherit $280,000 in 3 years, but right now all you have is $28,000, and you can afford to make payments of no more than $19,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.) a. If the loan was amortized over 3 years, how large would each annual payment be? Do not round intermediate calculations. Round your answer to the nearest cent. $ Could you afford those payments? -Select- b. If the loan was amortized over 30 years, what would each payment be? Do not round intermediate calculations. Round your answer to the nearest cent. $ Could you afford those…
You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here Question Help: D Video Message instructor %24

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