Buy the premium mustang convertible

Assignment Help Finance Basics
Reference no: EM13342572

Ford Motor's Company's current incentives include 3.1 percent APR financing for 48 months or $1,400 cash back on a Mustang. Let's assume Suzie Student wants to buy a premium Mustang convertible, which costs $22,000 and she has no down payment other than the cash back from Ford. If she chooses the $1,400 cash back, Suzie can borrow from the VTech Credit Union at 5.1 percent APR for 48 months. (to the nearest cent)

1. If Suzie chooses 3.1 percent APR financing for 48 months to buy the premium Mustang convertible, which costs $22,000 = PMT (45.088608) what will be her monthly payment?
2. If Suzie chooses $1,400 cash back to buy the premium Mustang Convertible and borrows $20,600 from the VTech Credit Union at 5.1% APR for 48 months, how much will her monthly payment be?

Reference no: EM13342572

Questions Cloud

Find the change in length of the rod : An aluminum rod is 20.0 cm long at 20°C and has a mass of 350 g. If 12,500 J of energy is added to the rod by heat, what is the change in length of the rod
Find the volume of the bottle : A sealed bottle at 1 atm of pressure holds 1 mole of neon and 1 mole of argon gas at a temperature of 295 K. Find the volume of the bottle
What is the actual rate of return : You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the actual rate of return (or hold..
Explain hydrogen has a henerys law constant : hydrogen has a henerys law constant of 1.07x10^-6 M/mmHg at 25 degrees celsius when dissolving in water. if total pressu of gas (H2 plus water vapor) over water is 1 atm. what is the concentration of gas phase hydrogen
Buy the premium mustang convertible : 1. If Suzie chooses 3.1 percent APR financing for 48 months to buy the premium Mustang convertible, which costs $22,000 = PMT (45.088608) what will be her monthly payment?
Explain what is the entropy of h2 : The value of deltaS0 for the following reaction is - 233J/K at 250C. What is the entropy of H2 (g) at 250C? C2H2 (g) + 2H2 (g) ----> C2H6 (g) a.131 b.204 c.102 d. 262
Summary of significant accounting policies : On 14 July 2016, a rights issue of 1,280,000 ordinary shares were madeat $1.25 each. The underwriting commission and other shares issue costs forthe issue amounted to $15,000. The shares issued ranked equally with existing shares for dividend.
What is the present value of a lottery paid : How many years will your annuity last and what is the present value of a lottery paid as an annuity due for twenty years if the cash flows are $250,000 per year and the appropriate discount rate is 7.50%?
Explain enzyme that allows fireflies to illuminate abdomens : Firefly luciferase is the enzyme that allows fireflies to illuminate their abdomens. Because this light generation is an ATP-requiring reaction, firefly luciferase can be used to test for the presence of ATP.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected return on the portfolio

You own a portfolio that has $3,200 invested in Stock A and $4,200 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, what is the expected return on the portfolio?

  Compute a fair rate of return for intel common stock

Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent.

  Determine the estimated rate of return

how do you use the one factor model to determine the estimated rate of return when given the beta, standard deviation of the assets, and the standard deviation of the pricing factor (f).

  What are the steps for deriving the efficient frontier

What are the steps for deriving the efficient frontier.

  What is the amount of the net new borrowing for the current

The income statement for the current year displays an interest paid amount of $8,200. What is the amount of the net new borrowing for the current year?

  Identify current trends in macro and microeconomics

The Microsoft antitrust trial has been one of the biggest investigations of antitrust behavior since the turn of the century. Divide your group into two sides: one that supports the government side, and one that support's Microsoft's side.

  What to the nearest cent is the value

The three months risk-free interest rate (with continuous compounding) is 5%. What to the nearest cent is the value of the short forward contract?

  How much will you have in eleven years

You are scheduled to receive $7,500 in three years. When you receive it, you will invest it for eight more years at 7.5 percent per year. How much will you have in eleven years?

  Calculate the price of stock

The Jackson-Timberlake wardrobe Corporation just paid a dividend of $1.95 per share on its stock. The dividends are expected to increase on a constant rate of 6% per year indefinitely.

  Solution to future values

Evaluate the future values of following first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period:

  Low-risk retirement account

Explain what will her retirement account be worth at the end of these 35 years - low-risk retirement account

  Optimal cost of capital-wacc

What is meant by Weighted Average Cost of Capital (WACC)? Why is WACC a more appropriate discount rate when doing capital budgeting?

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