Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck fo an upfront cost of $200,000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4,000 (paid at the end of each month). Your firm can borrow at 8.2% APR with quarterly compounding. The monthly discount rate that you should use to evaluate the truck lease is closest to: OA. 0.8144% OB. 0.6833% OC. 0.543% OD. 0.6787%
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- You are ready to buy a house. Total price is $160,105. For the remaining part, youplan to borrow the loan from the bank. The interest rate on the loan is 6% per yearwith monthly compounding (.5% per month) for a 30-year fixed rate loan. Youare also required to pay $20000 initially for down payment. If you have an annualsalary of $36,000, and you expect to use 30% of your monthly income to coverthe house loan. Should you buy this house?Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck for an upfront cost of $250 000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $5 000 (paid at the end of each month). Your firm can borrow at 5% APR with quarterly compounding. What is the present value of lease payments? (Rounded to the nearest dollar)You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,200,000 purchase price. The monthly payment on this loan will be $12,000. a. What is the APR on this loan? Annual percentage rate b. What is the EAR? Effective annual rate
- You plan to purchase a $500,000 home with a 20% down payment. You can take out a 30-year FRM of $400,000 at an APR of 7.2%. (1) What is your monthly payment? (2) If you make regular monthly payments, how long will it take to pay off half of the loan? (i.e., reduce the principle of the loan balance to half) (3) After making regular monthly payments for 10 years, how much will be the loan balance? Assume you obtain two quotes with and without (discount) points: either 7.2% APR without point or 6% with 2.5 points.You are planning on buying a new house and want to make sure you can afford the monthly payments. The house you picked will necessitate you borrow $300,000. You think you can get the following. mortgage terms: borrow $300,000 at a fixed quoted (nominal) annual rate of 3.775%; to be paid off in equal monthly payments over 15 years.Compute the required monthly payment, and prepare an amortization table, showing for each month the beginning balance, payment, payment applied to interest, payment applied to principal, and ending. balance. (Assume monthly compounding) (solution needs to be in excel)You are considering purchasing a new automobile with the upfront cost of $26,000 or leasing it from the dealer for a period of 48 months. The dealer offers you 2.80% APR financing for 5 years (with payments made at the end of the month). Assuming you finance the entire $26,000 through the dealer, your monthly payments will be closest to $425.09 $429.11 O $473.25 $428.85
- You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94, 500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,400 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.6 percent. What will be the amount of the balloon payment six years from now? Thank you!You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon paymentYou are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to the nearest dollar. Amount of balloon payment
- You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,250. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,475 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.2 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to 2 decimal places. Amount of balloon paymentYou have to buy a new copier. The cost of the copier is $1,900, plus $415 per year in maintenance costs. The copier will last for five years. Alternatively, a local company offers to lease the copier to you and do the maintenance as well. If your discount rate is 6.5%, what is the most you would be willing to pay per year to lease the copier (your first lease payment is due in one year)? (Select the best choice below.) A. The most you would be willing to pay per year to lease the copier is $415. B. The most you would be willing to pay per year to lease the copier is $3,624.61. C. The most you would be willing to pay per year to lease the copier is $872.21. D. The most you would be willing to pay per year to lease the copier is $1,900.You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a ballon payment at the principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now?