What is the maximum price he can pay for the car

Assignment Help Finance Basics
Reference no: EM13280635

Matthew wants to take out a loan to buy a car. He calculates that he can make payments of $4000 per year. If he can get a five - year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?

Reference no: EM13280635

Questions Cloud

Determine how much power is dissipated by each component : John take a 1kΩ resistor, the 10μf capacitor, and the 10 mH inductor, and one by one connects them across one of the outlets in his dorm room. How much power is dissipated by each component (as a function of time)
How internal controls played a major role in the company : Use the library or other online resources for information about Enron filed for banktruptcy in 2001. Write a brief summary (3-5 paragraphs) of how internal controls played a major role in the company's downfall.
Find the dielectric constant of the oil : An oil-filled capacitor has square parallel plates 25cm on a side, separated by 0.50mm. Find the dielectric constant of the oil
What average power is delivered to the load during the life : Assume that an alkaline D-cell battery can maintain an average voltage of 1.25 V for 90 hours in a 10. load before becoming unusable. What average power is delivered to the load during the life of the battery
What is the maximum price he can pay for the car : Matthew wants to take out a loan to buy a car. He calculates that he can make payments of $4000 per year. If he can get a five - year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?
What will happen to the price of the bond : A $5000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5%. If interest rates falls and the yield to maturity decreases by 7.8% , what will happen to the price of the bond?
Calculate the resistivity of intrinsic si and room temp t : A Si wafer is doped with Na = 5x10^16 /cm^3 of acceptors. In equilibrium at T=330K calculate, list the following for the Si wafer: Eg (Energy gap), ni (intrinsic concentration), n,p - the free electron and hole concentrations
What will be the current value of a single share : Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cos..
What will be the current value of a single share : Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cos..

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate the company current stock price

BC Enterprises is expected to pay a dividend of $5 per share at the end of the year and that dividend is expected to grow at a constant rate of 5 percent each year in the future.

  What is the present value of their future prices

If Jake discounts the future price of the trees at 10% per year, what is the present value of their future prices? You should show your work! Please explain your answer.

  What is the total value of turner corp

This firm had 150 million shares outstanding, a share price of $14.25, and net income of $182 million. What is the total value of Turner Corp.? Round to the nearest million dollars.

  What is the minimum expected annual return for stock

what is the minimum expected annual return for Stock 3 that will enable Sara to achieve her investment requirement?

  What is the effective annual rate of the discount

A supplier grants your firm credit terms of 2/10, net 30. What is the effective annual rate of the discount if the firm purchases $1,850 worth of merchandise?

  What would happen to the monetary base

What would happen to the monetary base if the U.S. Treasury collected $4 billion in taxes, which it deposited in its account at the Fed, and the Fed bought $2.5 billion in government securities?

  How many shares will be required for a minority group

Given that there are 4,000,000 shares outstanding in Miller Corp how many shares will be required for a minority group of stockholders to elect 2 of 9 members on the board of directors? ( Assume cumulative voting required)

  Financial management theory

More of financial management theory is based on assumption that individuals act rationally in their decision making. text has noted several areas where conclusion is that individuals do not act rationally.

  Compute sustainable rate of growth

Compute sustainable rate of growth and the total asset turnover is 1.40 and the equity multiplier is 1.50

  Calculate current intrinsic value

Suppose you are an analyst studying Beranek Technologies, which was founded ten years ago. It has been profitable for the last five years, but it has needed all of its earnings to support growth and thus has never paid a dividend.

  Describe the term bond valuation

Describe the term Bond valuation and what coupon rate should be set on the bond with warrants if the total package is to sell for $1,000

  What should be the market price of moriband stock

If investors in stocks of companies like Moriband require a rate of return of 17 percent, what should be the market price of Moriband stock?

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