The Home Depot is clearing out lawn mowers for $399.75 in an end-of-season sale that ends on September 30. Alternatively, you could wait until April 1 (assume February is in a non–leap year) and pay $419.95 on the same lawn mower. Assume your money can earn simple interest of 4.72% on a short-term investment. a. Which option should you choose? b. How much money will you have saved on September 30 by making that choice?

Suppose you can buy a new Toyota corolla for $20000 and sell it for $12000 in third year. For simplication, assume you sell the car at the beginning of the third year but can keep driving it until the end of the third year. Alternatively you can lease the car for $300 per month for three years and return it at the end of the three years. For simplication, assume that lease payments are made yearly instead of monthly- i.e,, that they are $3600 per year and are made at the beginning of each of the three years. a. If the interest rate R is 4%, it is better to buy or lease? b. If the interest rate is 10%,it is better to buy or lease? c. At what interest rate would you be indifferent between buying and leasing the car in percent?

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. Thesign will cost $4,300 and will be posted for one year. You expect that it will generate additionalrevenue of $817 a month. What is the payback period?

4. You want to buy a house that costs $620,000. You can put $55,000 down. You get a 30 year fixed-rate loan with an APR of 4.5% compounded monthly. Mor Determine the monthly payment. Show clear work. Work: Work: Answer: Find the total closing costs if they consist of a fee of $1600 and 3 points. Answer: www Suppose that you invest $4800 in an account with an APR of 6.9%, compounded continuously. Determine how much you will have after 3 years. Assume that no additional deposits are made.

Suppose you want to buy a $143,000 home. You found a bank that offers a 30-year loan at 3.9% APR.A. What will be your monthly payment? (Round to the nearest cent.)B. How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.)C. Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) D.How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) E. How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)

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.

You are considering the purchase of a $54,000 Ford F-150 Raptor. If you are financing the truck for 60 months and the auto loan annual rate is 3.5%, what is your monthly car payment? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer

You are considering the purchase of new living room furniture that costs $1,140. The store will allow you to make weekly payments of $25.12 for one year to pay off the loan. What is the EAR of this arrangment? Multiple Choice 27.39% 29.41% 32.99% 31.42%

A real estate property is on the market.  You have estimated it will give you net cash flows of $5353 per month.  You hope to sell it in 7 years for $334380. Your required return is 9.24%, how much should you be willing to pay for the property today?  Answer:

Suppose you want to buy a $159,000 home. You found a bank that offers a 30-year loan at 3.3% APR. What will be your monthly payment? (Round to the nearest cent.) How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) $