You're thinking of buying a car to travel around in, rather than paying $2,788 at the end of every year to use the train. You can buy an old second hand car for $5,000 now (t=0), and sell it after 14 years for $3,500 (t=14). You estimate that the car will cost $5,500 per year in fuel, insurance, registration and maintenance, paid in arrears, so there will be 14 payments from t=1 to t=14 inclusive. The required return is 13% pa. Select the most correct statement. The equivalent annual cost (EAC) of the car is: Select one: O a. $6,040 so the train is cheaper than the car. O b. $6,193 so the train is cheaper than the car. $6,293 so the train is cheaper than the car. O c. O d. $12,455 so the train is cheaper than the car. O e. $39,031 so the train is cheaper than the car.

You found your dream home! The down payment is $29,000. However, you still need 40% of the down payment plus required improvements will cost another 18% (First: what total % of the down payment do you need? _____). You borrow the money from your Savings & Loan, but you must pay it back within 10 years at an interest rate of 14%. Using this amount as your principal P, calculate the future value A using:2) Simple Interest

Suppose you want to buy a new car that costs $32,900. You have no cash-only your old car, which is worth $4000 as a trade-in The dealer says the interest rate is 5% add-on for 5 years Find your total cost, for the new car plus interest The total cost, for the new car plus interest, is $ (Simplify your answer.) GEOTE

1.) Starting with $15,000, how much will you have in 10 years if you can earn 6 percent on your money? 2.) If you can earn only 4 percent? If the average new home costs $275,000 today, how much will it cost in 10 years if the price increases by 5 percent each year? 3.) If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million?

An apartment will generate $8,000 a year for 5 years, after which you expect to sell the property for $100,000. What is the maximum you should pay for the property if your cost of money is 10% ?

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 thinking about buying a house, and you have one in mind that costs $600,000. The bank is offering 6% loans and requires a 15% down payment. What is the most you can borrow? What will your monthly payment be on a 30 year loan? How much principal will you still owe after 6 years?

Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The​ new-car option: The new car costs ​$26,000 and can be financed with a four​-year loan at 7.75​%. The​ used-car option: A​ three-year old model of the same car costs ​$16,000 and can be financed with a four​-year loan at 5.28​%. What is the difference in monthly payments between financing the new car and financing the used​ car?  ​(Round to the nearest cent as​ needed.)

You're trying to save to buy a new $68,000 sports car. Currently, you have saved $36840 which is invested at 4.9 percent annual interest. How many years will it be before you purchase the car assuming the price of the car remains constant?

You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent.$   What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $