Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price (gross capitalized cost) of $38,000 and could borrow the money to buy from her credit union by putting $3,300 down and paying $814.93 per month for 48 months at 6 percent APR. Alternatively, she could lease the car for 48 months at $535 per month by paying a $3,300 capitalized cost reduction and a $350 disposition fee on the car, which is projected to have a residual value of $11,800 at the end of the lease. Use the Run the Numbers worksheet to advise Amanda about whether she should finance or lease the car. Round your answers to the nearest cent.

Karl Yates needs $6,000 to pay for the remodeling work on his house. A contractor agrees to do the work in 10 months. How much should Karl deposit at 6.9% in order to accumulate the $6,000 by that time? Karl should deposit $ (Round to the nearest cent.)

Which of the following is TRUE? O An American call option on a stock should never be exercised early O An American call option on a stock should be exercised early when dividends are expected O It can sometimes be optimal to exercise early an American call option on a stock even when no dividends are expected and there is no liquidity or portfolio rebalancing need. O An American call option on a stock should never be exercised early when no dividends are expected << Previous Next ▸

Vashti has a suburban home within walking distance of the railroad. She commutes to work in the city at a cost of $366.50 a month. She also rents a car every weekend, which costs $450 a month including insurance and fuel. She is considering purchasing a new car for cash to replace commuting and rental costs. It would cost $22,000, get 31 miles per gallon, and have an estimated resale value of $8,000 after five years. After buying this car, Vashti would drive 20,000 miles per year and have maintenance and repairs of $1,400 per year, insurance of $1,500 per year, and fuel costs of $2.50 per gallon. Assume that all costs occur at the end of the year and that she sells the car at the end of the fifth year. If Vashti's discount rate is 7 percent after tax, should she purchase the car?

Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that she found online for $9,275, plus sales tax of 5.5%. The supply company is offering cash terms of 2/15, n/30, with a 1.5% service charge on late payments, or 90 days same as cash financing if Deja is approved for a company line of credit. If she is unable to pay within 90 days under the second option, she would have to pay 22.9% annual simple interest for the first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. Deja has an excellent credit rating but is unsure of what to do. a) If Deja took the cash option and was able to pay off the printer within the 15-day discount period, how much would she save? How much would she owe? b) If Deja takes the 90 days same as cash option and purchases the printer on December 30 to get a current-year tax deduction, using exact time, what is her deadline for paying no interest in a non-leap year? In a leap year?

Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,300. He put $1,900 down and financed the rest with a 48-month, 8.0% loan. What is his monthly car payment by table lookup? (Use Table 14.2

Judi Pendergrass is an account representative at Ever Pharmaceuticals. She has a company car for customer visits, which she uses to commute from home to work on Monday mornings and work to home on Friday nights, 50 weeks per year. Her commute is 23 miles each direction. Required:Using the commuting rule, what is the valuation of the fringe benefit?         Value of fringe benefit

Addie wants to buy a car that is available at two dealerships. The price of the car is the same at both dealerships. Sams Motors would let her make quarterly payments of $7,500.00 for 6 years at a quarterly interest rate of 4.24 percent. Her first payment to Sams Motors would be due immediately. If Bolden Cars would let her make equal monthly payments of $3,500.00 at a monthly interest rate of 1.56 percent and if her first payment to Bolden Cars would be in 1 month, then how many monthly payments would Addie need to make to Bolden Cars? 17.90 (plus or minus 0.3 payments) O 47.21 (plus or minus 0.3 payments) 46.15 (plus or minus 0.3 payments) 17.58 (plus or minus 0.3 payments) 17.63 (plus or minus 0.3 payments)

Preet wants to purchase a new dress for wedding at a cost of $1200 plus 12% tax. She can afford to make monthly repayments of $85 and has two credit options. a) The first is to use the store credit card which charges 21.3% annual interest, compounded daily on outstanding balances, but offers to pay 12% tax on the dress. b) Her other option is her bank credit card which charges 14.9% annual interest, compounded daily. The card does not have an outstanding balance. By how much is one of the options less expensive than the other?

Please answer all parts of the question