What is the monthly payment fred will be paying

Assignment Help Financial Management

Reference no: EM132044590

Fred is interested in buying a car which costs $21,000. The dealer tells Fred that if he pays $2,000 in cash up front, the dealer will finance the rest of the purchase price (so a $19,000 loan). The dealer says he’ll charge a 3.25% interest rate, payable monthly, for a loan due in three years. What is the monthly payment Fred will be paying if he elects to accept this financing from the dealer?

Solve using a financial caltulator (fv, pv, i/yr, etc. )

Reference no: EM132044590

Questions Cloud

Best estimate of the company cost of equity : If the stock sells for $34 per share, what is your best estimate of the company’s cost of equity?

Which is incremental cash flow : Which of the following is an incremental cash flow that should be included in a project analysis?

What is an estimate of barrett price per share : What is the present value of the free cash flows projected during the next 4 years? What is an estimate of Barrett's price per share?

What is the actual rate of return : What is the actual rate of return (or holding period return) over this 8 year period?

What is the monthly payment fred will be paying : What is the monthly payment Fred will be paying if he elects to accept this financing from the dealer?

Differences between bearer and registered bonds : Describe the differences between bearer and registered bonds? Why might an investor want to own bearer bonds?

Tax cuts and jobs act : Congress recently passed the Tax Cuts and Jobs Act (TCJA). What is the goal (at least stated goal) of the TCJA?

What is the firm intrinsic value today : Hart Enterprises recently paid a dividend, D0, of $3.75. What is the firm's horizon, or continuing, value? What is the firm's intrinsic value today?

Microtech corporation is expanding rapidly : Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

User Account

All Pages