User Account

All Pages

Present value of the car payments

Assignment Help Finance Basics
Reference no: EM131097079

A car dealership offers you no money down on a new car. You may pay for the car for 4 years by equal monthly end-of-the-month payments of $386 each, with the first payment to be made one month from today. If the discount annual rate is 8.40 percent compounded monthly, what is the present value of the car payments?

Round the answer to two decimal places.

Reference no: EM131097079

Questions Cloud

How can psychological research and theories : Prescription Drug Abuse Among Rural Teens: How can psychological research, theories, and perspectives be used to reduce prescription drug abuse among rural teens?
What is the purpose of regression : What is the purpose of regression
Determine the probability that the test will conclude cost : Determine the probability that the test will conclude the cost of owning a car in Los Angeles is not more than 10% less than in Detroit when in fact the average cost is $10,361.
Estimate of the current stock price : There are 7.1 million shares of stock outstanding and investors require a return of 13 percent on the company's stock. The corporate tax rate is 39 percent. a. What is your estimate of the current stock price?
Present value of the car payments : If the discount annual rate is 8.40 percent compounded monthly, what is the present value of the car payments?
Determine the values of each one of these r.v.''s : Determine the values of each one of these r.v.'s, as well as the values of the sum X1+X2+X3+X4.
Cost of equity after the switch : The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.
Find the linear equation expressing the system''s book value : Find the linear equation expressing the system's book value
Shareholders equity account : Sankey, Inc., has current assets of $5,125, net fixed assets of $25,600, current liabilities of $4,500, and long-term debt of $9,900. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the ear of the credit

You just puchased $8700 of goods from your supplier with credit terms of 3/10, net 30. What is the EAR of the credit if you did not use the cash discount?

  On the other hand your friend knows that she will not be

a friend has an elderly mother who lives in a house adjacent to her church. the church is growing and would welcome the

  What is the current price of this preferred stock

The First Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 14.5 percen..

  A firm is evaluating an accounts receivable change that

a firm is evaluating an accounts receivable change that would increase bad debts from 2 to 4 of sales. sales are

  Decision makers and analysts look deeply into profitability

Decision makers and analysts look deeply into profitability ratios

  Rain corp is issuing a 10-year bond with a face value

Rain Corp is issuing a 10-year bond with a face value of $1 000 with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent, compounded annually. Assuming annual payments, what is the present value of the bond? (Round ..

  Discuss the main reasons why this perspective is relevant

Sociologists explain deviance by three (3) major perspectives: biological, functional conflict, and symbolic interaction. Identify your role, for example, as a parent and which perspective best reflects your personal experience. Discuss the main r..

  Compute the cost of borrowing by using debt

Based on information given above, compute the cost of borrowing by using debt for present company.

  Assume these securities are correctly priced

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market?

  Find the markup percentage

During the month, the department received merchandise that cost $95,000 with a 51% markup. Find the markup percentage.

  Break-even analysis and leverage

Highland Cable Corporation is planning an expansion of its facilities. Its current income statement is as follows:

  Balance sheet accounts of greenville corporation

The balance sheet accounts of Greenville Corporation at the beginning and end of 2014 are:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd