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You are offered two options by the Waverley Toyata dealer for purchasing a Toyota landcruiser 4WD
Option 1: upfront where you pay $100,000 now
Option 2: 2-year monthly payment plan of $4500/month, starting today, with a final payment to be made 23 months from today1) Assume that you have chosen option 2 to purchase the car. Immediately after the 12th monthly payment, you encounter some temporary financial difficulty and are only able to afford monthly payment of $4000. After negotiating with the dealer, they are happy for you to pay $4000 per month for the rest of the contract and a final lump sum payment right at the end of the contract. if the market interest rates rate is still 6% p.a., how much would this final lump sum payment be so that you will not be worse off by this new arrangement? (Do Not use Excel)
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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