Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $73,500 worth of parts from your supplier and the discount is at an annual rate of 8%. How much will you pay for the parts if you pay today? A) $73,500 B) $72,099 C) $68,056 D) $72,046

Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $73,500 worth of parts from your supplier and the discount is at an annual rate of 8%. How much will you pay for the parts if you pay today? A) $73,500 B) $72,099 C) $68,056 D) $72,046

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

QUESTION 16 You wish to buy a $21,500 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH? How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH?
QUESTION 17 You wish to buy a $9,500 dining room set. The furniture store offers you a 2-year loan with an APR of 7.2 percent. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH? How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH?
QUESTION 7 How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car one year from now, assuming that the car's current price is $25,000, and inflation will be 2.5%?
Use the following to answer questions 31 – 33 You want a new car. At the dealership, you find a car that you like. The dealership gives you two payment options: 1. Pay $23,000 in cash for the car today...OR Pay $370.41 at the end of each month for six years at 5% (0.41667% monthly for 72n). 2. How much CASH (in total) up paying if you choose to make monthly 31. $ will you end payments for the car? 32. How much interest (in total) $ will you pay if you choose to make payments instead of paying cash for the car today? 33. $ How much interest has accrued by the time the first car payment is due (round to two decimal places)?
QUESTION 12 An auto dealer offers you the choice of “cash back” or “0% APR financing.” You are planning to buy a car of $30,000 sticker price. If you pay for it by cash, you receive a cash back immediately, so the actual car price is lower than the sticker price by the cash back amount. Alternatively, the dealer will lend you the $30,000 purchase price, and you must repay the loan in equal monthly installments (payable at the end of each month) over a five-year period at an APR of 0%. Assume that you can borrow money from a bank for 5 years, with equal monthly payments, at an APR of 6%. What is the minimum cash back amount, if you are to choose the cash back option? a. $5,000 b. $4,137 c. $4,563 d. $3,504
Question 20 You owe $26,000 on student loans at an interest rate of 3.6% compounded monthly. You want to pay off the loan in 15 years. You should show your work for this problem. nts What will your monthly payments be? How much interest do you pay? > Next Question mplete 31
Very ungent Please answer asap You are considering purchasing a new car that will cost you $32,000. The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month). Assuming you finance the entire $32,000 and finance through the dealer, your monthly payments will be (round to the nearest dollar): a. $1,171 b. $602 c. $1,086 d. $974
Question 5 of 10 You plan to save money for a down payment of $37,000 to purchase an apartment. You can only afford to save $1,250 at the end of every quarter into an account that earns interest at 3.71% compounded annually. How long will it take you to save the planned amount? o years o months Express the answer in years and months, rounded to the next payment period SUBMIT QUESTION k SU 1 O 0 SAVE PROGRESS
Pre-Lecture Question 5 You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment? (Round intermediate calculation to four decimal places. Round the final answer to the nearest of two decimals.) $566.67 $637.41 $433.33 $552.42
G the year payment 1000 if the dis The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments? 5/15 Qs ice: 183.60 000.00 833.39 673.01 Submit Logged in as Qusai Aljabri Logout
Question 11 To purchase a new car, you borrow $20,000. The bank offers a 6-year loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest: Which time value factor should be used to solve this problem? O PWCAF O USCAF O SPCAF O USPWF
Home Work 2.35, Chapter 35A You would like to purchase a software business for $350,000 with a 10-year loan. Your local bank is willing to lend you money with an interest rate of 5% per year. Assuming you can pay $100,000 at the end of the 10 years from a savings account, while making quarterly payments. What quarterly payment, paid at the beginning of every quarter, will you have to pay the bank? What would the quarterly payments be if made at the end of the quarter?

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