What is the payment per month for the first option

Assignment Help Financial Management
Reference no: EM131012607

A car company is offering a choice of deals. You can receive $1,950 cash back on the purchase, or a 5 percent APR, five-year loan. The price of the car is $20,950 and you could obtain a five-year loan from your credit union, at 8 percent APR.

What is the payment per month for the first option? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Payment per month $___________

Reference no: EM131012607

Questions Cloud

Calculate the ultimate bod : A BOD test was conducted on the unchlorinated effluent of a municipal treatment plant. The wastewater portion added to a 300 mL BOD bottle was 8 ml. The dissolved oxygen values and incubation periods are listed below. Determine the 5-day BOD value..
Perpetual and zero bonds : What is the value of perpetuity bond today, assuming it pays $1000 per year? What is the value of the zero coupon bond today? How many of the perpetual and zero bonds would you be purchasing today?
How much money will it have in the account at end of august : Suppose this ice cream store deposits its receipts in an account paying 5% interest per year compounded continuously. How much money will it have in the account at the end of August?
Estimate the total time and cost for excavation : Estimate the total time and cost for excavation of a trench 30-in. wide with an average depth of 7 ft. The trench is 6,400 & long in common earth. A ladder-type trenching machine will be used with productivity of 25.9 ft/hr.
What is the payment per month for the first option : A car company is offering a choice of deals. You can receive $1,950 cash back on the purchase, or a 5 percent APR, five-year loan. The price of the car is $20,950 and you could obtain a five-year loan from your credit union, at 8 percent APR. What is..
Effective annual interest rate : What is your effective annual interest rate (an opportunity cost) on the revolving credit arrangement if your firm does not use it during the year?
Find a nonconstant monotonically increasing function : Find a nonconstant monotonically increasing function g on (0, 1] such that f ∈ R([O, 1],g), and provide a proof for your assertion.
Compute the allocation of the cash dividend : Prepare a stockholders' equity section at December 31, 2014. Total stockholders' equity $7,140,000
Find the price at which analog stock should sell : Find the price at which Analog's stock should sell. Calculate the P/E ratio. Calculate the present value of growth opportunities.

Reviews

Write a Review

Financial Management Questions & Answers

  What is their current yield

Malko Enterprises’ bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?

  Explain what is the firm''s weighted average cost of capital

Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

  Proposed cash management assuming firms opportunity cost

Agatha Concrete Company has been offered by its bank to manage its cash at a cost of $35,000 per year. Under the proposed cash management, the firm can reduce the cash required on hand by $180,000. What recommendation would you give the firm with res..

  IBM Bond Pricing

All bonds have some common characteristics, but they do not always have the same contractual features. Differences in contractual provisions, and in the underlying strength of the companies backing the bonds, lead to major differences in bonds risks,..

  Balance sheet-what is the firms net working capital

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.8 million and net plant and equipment equals $2.4 million. What is the company's total debt?  What is the balance of cur..

  What monthly car mortgage payments

What monthly car mortgage payments for the next 36 months are required to amortize a present loan of $3000 if interest is 12% compounded monthly?

  1 the eurusd spot exchange rate is quoted as 132250-132267

1. the eurusd spot exchange rate is quoted as 1.32250-1.32267. how many eur are needed to purchase 100000000 usd on

  Partial balance sheet and income statement

A partial balance sheet and income statement for King Corporation follow: The trade receivables at December 31, 2010, were $280,000, net of an allowance of $8,000, for a gross receivables figure of $288,000. The inventory at December 31, 2010, was $5..

  The standard deviation of resulting portfolio will be what

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock ..

  Considering the purchase of two different annuities

Thomas is considering the purchase of two different annuities. The first begins in three years and pays $1,000 per year for five years. The second begins in 10 years and pays $2,500 per year for seven years.

  Evaluate generation project with the cash flows

Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 –$ 39,400,000 1 63,400,000 2 – 12,400,000 a-1 What is the NPV for the project if the company requires a return of 10 percent?

  Expected interest rate-real risk-free rate

The real risk-free rate is 3.15%. Inflation is expected to be 2.6% this year, 4.65% next year, and then 2.15% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year ..

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!

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