What is the hire purchase price?

Q: You are considering either leasing or purchasing a car. You notice an ad that says you can lease the…

A: Lease is a contract between two parties in which one party gives right to use of asset to another…

Q: Lamar plans to buy a used truck that costs $20,000. The dealer requires a 20% down payment. The rest…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Consider the following two options proposed by an auto dealer: Option A: purchase the vehicle at the…

A: The time value of money is a concept in finance that takes into account the effect of compounding,…

Q: If you buy a computer directly from the manufacturer for $2234 and agreed to pay it in 48 equal…

A: These days manufacturers and sellers give the option to buyers to pay the cost of their purchase in…

Q: A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay…

A: Present value refers to the money received today being more valuable than the money will receive…

Q: If I purchase a TV with surroundsound and remote control, I need an installment plan with $100 down…

A: Given that,Down Payment = $100No. of payments=12Amount of Each installment =106.22

Q: 1. A television set is for sale at ₱ 13,499 in cash or on installment terms, ₱ 2,500 each month for…

A: When given two repayment options of payment in annuity, one must select the option with lowest…

Q: we have the following components for an automobile loan: Purchase price: $18,900; sales tax: 6.5%;…

A: In accounting, for any asset the asset’s cost is not just the purchase price of the asset. The cost…

Q: ans are available for a company to obtain automobiles for its salesmen. Use an interest rate of 10%.…

A: In this we need to calculate the present value of both option and select the best.

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: If you buy a stereo set for $600 and agree to pay for it in 18 equal installments at 1% interest per…

A: In the given question we need to compute the amount of monthly payments on a loan of $600

Q: n payment for the purchase of a car. How much is the mortgaged amount if the cash value of the car…

A: Mortgage - Mortgages are a sort of loan that can be used to buy or keep up a house, land, or other…

Q: Smith's Trailer Sales will finance a 16-foot utility trailer with ramps and electric brakes. If a…

A: Installment Price = Down Payment + (Monthly Payment * Number of Payments)

Q: A metallurgist purchases a car for total cost including tax and license of $35,295.66. If the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: 1. Lucy Heartfillia buy a television set from a merchant who offers P25,000 at the end of 60 days.…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: The RentWay company advertises itself as “Rent to own program”. For example, you can rent a $180 TV,…

A: The concept of time value of money means that the value of money today is worth more than its value…

Q: You purchase a $1,152,000 lake house and made a down-payment of $658,000. If you were to use the tvm…

A: GIVEN, PURCHASE PRICE=$1,152,000  DOWNPAYMENT =$658,000 LOAN AMOUNT = PURCHASE PRICE - DOWNPAYEMNT…

Q: to dealership is advertising that a new car with a sticker price of $34,128 is on sale for $25,995…

A: Effective interest rate is the interest rate considering the impact of compounding on the interest…

Q: A vendor tries to sell you a subscription at $40 per user per month. You need 3 users to access the…

A: Cost is the specified amount of money that is required to be paid, before acquiring a good or…

Q: 2- A car may be purchased with $3000 down payment now and 60 monthly payment with interest of 480 if…

A: Monthly payment is that amount which is paid by the borrower to lendor every month. It includes the…

Q: ntegrated Visual Technologies is offering anyone who purchases a television an annual interest rate…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: Based on the following, calculate the costs of buying versus leasing a motor vehicle.

A: Solution:- Given, Down payment = $1,500 Security deposit = $500  Estimated value at end of loan =…

Q: A pottery factory purchases a continuous belt conveyor kiln for $48,000. A 6.2​% APR loan with…

A: Given: Rate =6.2%Time =monthlyPmt =$428.13Present Value(PV)=$48000

Q: The original price of a Honda Shadow to the dealer was $17,045, but the dealer will pay only $16,335…

A: A rebate is a reduction in the price of a product or service offered as an incentive to purchase. It…

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The cash price or the purchase price will be the current worth of all the payments made on a monthly…

Q: An engineering firm can pay for its liability insurance on an annual or monthly basis. If paid…

A: Effective interest rate=1+rnn-1

Q: you are buying new television. from past experience you estimate future repair cost as P500 during…

A: Capital Budgeting is the process of assessing long-term decisions made by management in order to…

Q: If you buy a computer directly from the manufacturer for $2,509 and agree to repay it in 60 equal…

A: This is the case of present value of annuity. Annuity is equal stream of cashflow at regular…

Q: You need a loan of $130,000 to buy a home. Calculate your monthly payments and total closing costs…

A: Loan refers to the amount borrowed from the financial institution against which the borrower is…

Q: Prepare a journal entry for purchasing a AFS security for $150000.

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers thee…

A: Net present value: The difference between the inflow of cash and outflow of cash during the period…

Q: home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: n apartment you are interested in is on offer for sale at $121,400. The projected annual rent income…

A: The objective of the question is to determine whether the investment in the apartment is a good…

Q: A condo is advertised in The Wall Street Journal for $350,000. It states in the ad that a 20% down…

A: Given:P = Principal (loan amount) = $280,000r = Monthly interest rate = 11% per year ÷ 12 months =…

Q: A metallurgist purchases a car for total cost including tax and license of $31,795.66. If the…

A: Compound = monthly = 12 Present value = pv = $31,795.66 Time = t = 4 * 12 = 48 month Interest rate =…

Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…

A: A loan refers to an agreement where money is given by one party to the other party on the promise of…

Q: You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs…

A: An annuity is a series of equal cash flows discounted at an assumed interest rate over a specified…

Q: A photographer wants to buy an Olympus OM-D E-M1 Mark II camera for $1,530. The retailer is offering…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.