You are considering buying 2024 BMW M340i xDrive Sedan for $61945 for a 5-year term at an annual rate of 5.25%. Calculate monthly payment for a variety of principal balances from $52,000 to $70,000 (in $2000 increments) and for a variety of terms ranging from 3 years to 6 years.
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%Present Values Krista Kellman has an opportunity to purchase a government security that will pay $200,000 in 5 years. Required: Note: Round answers to two decimal places. 1. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded annually. 2. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 10% compounded annually. 3. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded semiannually.If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
- Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?You are considering two options in purchasing an automobile:Option A: Purchase the vehicle worth $26,200 and pay for the vehicle over3 years with equal monthly payments at 3% APR financing.Option B: Purchase the vehicle at a discount price of $24,000 to be paid immediately.The funds, which would be used to purchase the vehicle, are presently earning6% annual interest compounded monthly. Which of the following statements isincorrect?(a) If you go with Option A, the monthly payment would be $761.93.(b) Option B is a better choice if you have enough money to purchase in cash.For item (13) A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000? _____13. How many artificial payments is given?
- Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Sosa to make 10 equal annual payments of $16,274.53, with the first payment due one year after the purchase. Instructions(a) How much total interest will Sosa pay on this payment plan?(b) Sosa could borrow $100,000 from its bank to finance the purchase at an annual rate of 9%. Should Sosa borrow from the bank or use the manufacturer’s payment plan to pay for the equipmentThe executive of a label is looking to purchase a new rental for $3.9 million. Financing is offered for a 3.9% rate over 6 years. If $800,000 is place down towards the entire purchase, what will the monthly payment for the loan be? Use Excel functions to complete the calculation.You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a ballon payment at the principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now?
- Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing-that is, a loan from the current owners of the agency. The loan will be for 2,100,000 financed at an APR of 8 percent compounded monthly. This loan will be paid off over 7 years with end o month payments, along with a 600,000 balloon payment at the end of year 7. That is, the 2.1 million loan will be paid off with monthly payments, and there will also be a final payment of 600,000 at the end of the final month. How much will the monthly payments be?YOUR PARENTS OBTAIN A 2021 MODEL OF TOYOTA FORTUNER FOR P1,500,000.00. THE AGREED PAYMENT IS 5 YEARS and MONTHLY AMORTIZATION CHARGING THEM 8% INTEREST RATE. TOYOTA REQUIRED A DOWN PAYMENT OF 30%. FIND THE MONTHLY AMORTIZATION. 1. CONSTRUCT AN AMORTIZATION SCHEDULE USING AN EXCEL FORMAT THEN ANSWER THE FOLLOWING QUESTIONS: a) AFTER PAYING FOR 3 YEARS, YOUR PARENTS DECIDED TO PAY THE REMAINING PRINCIPAL BALANCE, HOW MUCH IS THE REMAINING PRINCIPAL BALANCE AT THE BEGINNING OF 4TH YEAR? b) HOW MUCH INTEREST DID YOUR PARENT SAVE BY PAYING AT THE REMAINING PRINCIPAL AMOUNT AT THE START OF 4TH YEAR? c) IF THEY DECIDED NOT TO PAY THE PRINCIPAL STARTING ON THE 4TH YEAR AND CONTINUE PAYING THE MONTHLY AMORTIZATION UNTIL THE END OF TERM, HOW MUCH IS THE TOTAL INTEREST PAID?The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at a rate of 4.2% per year compounded monthly. What monthly payment will the individual be required to make if the car is financed over a period of 48 months? What will the individual pay in interest charges over the period of 48 months?