Tea and Crumpet’s Inc. needs $11,302.77 to purchase a new commercial oven. If the company can afford to deposit $6,400.00 today into an account that accrues 9.1% interest compounded continuously. How long will it take to have the amount needed to purchase the over round to the nearest quarter of the year?

You have decided to buy a car this year at a price of $18,000. You're planning to take out a loan for the full price of the vehicle at an interest rate of .5% per month. For the first two years (24 months), you decide to repay $600 per month. How much will you have to pay each month for the remainder of the three-year loan (12 months remain) to exactly pay off the car in full at the end of the three-year term? Hint: Consider the monthly interest rate, the number of periods in months, and the monthly cash flows. $433 $500 $443 $600 O $419

Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down payment of $999 you can wait for 1½ years to pay the $9,000 balance. If Lola's Furniture immediately sells the $9,000 receivable contract to the Barzini Finance Group at a discount rate of 18% compounded quarterly, how much money will Lola's actually receive for the "houseful of furniture"?

a.  Renting a machine will need monthly payments of $6,000 for the next 5 years (i.e., at t = 1, 2, …, 60). However,if we choose to buy the machine today,which is (t = 0) will cost $320,000. Assume the machine's value is zero after 5 years. It is   possible to borrow and lend at a semi-annually compounded interest rate of 6% (APR). Would it be better to buy or to lease?  Explain.      b.We are currently at year 0. It is worthy to note that there is a perpetuity that pays $250 at the end of each odd year and $150 at  the end of each even year. The term structure is flat at 10% per year. Evaluate the present value of this perpetuity.     c.Assume the CAPM is valid.The return on asset ABC is perfectly correlated with the return on market portfolio. Your friend  makes the following statetment: a portfolio that had a dollar invested and  at the same time,shorting one dollar of the market portfolio will have no systematic risk. Comment on this and whether it is feasible.

An auto dealer has designed a marketing gimmick. They are asking their customers tinky only $109 at the end of each month, for the first two years for a car priced at $10,000. The APR on the vehicle is 5.40% and the total term of the loan is 5 years. What is the monthly payment for the remaining three years? Interest is payable during the entire five year period.

You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must you save, each month for 30 months, starting next month (the same amount each month) if your savings account pays 2.91% APR (compounded monthly)?

A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Equivalent annual cost S 35,501.30x b. Which is the better option? Buy Lease

betty's bakery is planning for future expansion. the company estimates that i will need 59,500 to purchase a new commercial oven 5 years from now. assuming a 2% annual interest rate compounded annually, use the pv function in excel or a financials calculator to determine how much betty's must invest today to have 59,500 5 years from now on. present value=??

Framing Art Inc. will need to purchase two new cashier machines in 3 years, at a cost of $ 137 each. A savings account pays 2% per year compounded quarterly. How much should Framing Art Inc. deposit now in this account to have the cash available in 3 years to pay cash for both machines?

A new furniture set costs $ 2100. If you make a down payment of $ 700 and finance the rest at a rate of 9.4% for 12 months, find the monthly payments on your loan. How much will you have paid in interest over the course of the loan? Repayment amount= Interest paid=