Answered: A store advertises a motorcycle for…

A store advertises a motorcycle for 3,000 down payment and 3,000 per month for 15 months. If the interest is 15% compounded monthly, what is the actual value of the motorcycle?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

See similar textbooks

Related questions

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Answer: Calculation of the future value: Step 1: Calculation of the future value of 5900 pesos:…

Q: Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month…

A: Calculation of Present Value of Payments:

Q: A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: For the car loan described, give the following information. A car dealer will sell you the $30,950…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: A house is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: Price of house $1,00,000 Less: Down payment $30,000 Loan Amount $70,000…

Q: A computer with software costs $2,941, and Catherine Stevens has agreed to pay a 17% per year…

A: Given, Cash price of computer = $ 2,941 Rate per 18 months = 0.17/12 * 18 = 25.5%

Q: a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A guitar manufacturer is making 50 guitars, at $350 each, for a music store. To pay the bill, the…

A: A loan is an external source of funds that is acquired at a certain rate of interest and for a…

Q: A car was bought on an installment basis with a monthly installment of P30,000 for 60 months. If the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Ben Spendlove just purchased a new stereo system for $975 and will be making payments of $45 per…

A: The amount borrowed from bank is known as loan. The interest rate on loan can either be charged…

Q: A payday loan company charges a $95 fee for a $350 payday loan that will be repaid in 11 days.…

A: A payday loan is a short-term unsecured loan, often characterized by high-interest rates. The term…

Q: In ‘N Out Payday Loans advertises that for a fee of only $10, you can immediately borrow up to $200…

A: Calculation of nominal interest rate per month =Amount of fees / Amount of borrowings = 10/200 =0.05…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

Q: house costs $350,000. You pay a 15% down payment and mortise the rest with equal monthly payments…

A: Given: Cost of house = $350,000 Down payment = 15% Years = 20 years Interest rate = 8.4%

Q: If you have a $15,000 car note with a $450.00 monthly payment, payable over 36 months, what interest…

A: In the given question we need to compute the interest rate from following details: Car note value =…

Q: A $40,000 new car loan is taken out with the terms 12% APR for 48 months. How much are monthly…

A: New car loan = $40,000 APR = 12% Time period = 48 Months

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…

Q: The cash price of a machine tool is $12,500. The dealer is willing to accept a $3500 down payment…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Please use excel if possible. A stamping machine is priced at $48,000. If a payment of $1,500 is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A car was bought on an installment basis with a monthly installment of 30,000 for 60 months. If the…

A: Monthly payment (P) = $ 30,000 Number of monthly payments (N) = 60 Annual interest rate = 12%…

Q: A payday loan company charges a $60 fee for a $450 payday loan that will be repaid in 10 days.…

A: Equivalent annual interest rate = fees changes/(Loan amount*number of days of loan/365)

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at…

A: Monthly payment can be calculated with the help of below expression:

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of Monthly Payments required can be calculated with the help of NPER function of Excel.…

Q: London Motors will sell a $16,949 car for $335 per month for 60 months. What is the interest rate?

A: We use Rate function to calculate interest rate

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: You want to buy a $26,000 car. The company is offering a 2% interest rate for 36 months (3 years).…

A: Monthly payments are the periodic amounts that a loan borrower has to make on a regular basis in…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay off the amount can be calculated with the help of NPER function…

Q: A car valued at $11,400 can be purchased for 10% down and end-of-month payments of $286.21 for…

A: The nominal interest rate, also known as an Annualized Percentage Rate or APR, is calculated by…

Q: A cellular phone may be purchased at ₱1,500 payable monthly for 18 months. The first payment is due…

A: Monthly payment = P 1500 Number of monthly payments = 18 First payment = After 3 Months Annual…

Q: A machine can be leased for four years at $1000 per month payable at the beginning of each month.…

A: present value of annuity formula: PVA =A×1-11+rmm×nrmwhere,A=annuityr=ratem=frequencyn=years present…

Q: A motorcycle is for sale for $20,200. The dealer is willing to sell it on the following terms: No…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A payday loan company charges a $45 fee for a $550 payday loan that will be repaid in 18 days.…

A: In this question we need to compute the equivalent annual interest rate.

Q: How many months will it take you to pay off a loan of $11,000 at 3% APR compounded monthly if you…

A: Loan = 11000 APR = 3% Monthly Compounding Interest Rate = APR / Number of compounding periods =…

Q: Suppose you buy an appliance costing $2350 at a store charging 13% add-on interest, you make a…

A: Computation of principal amount:

Q: You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the…

A: Time value concept Receiving the value today is of more value than that of receiving the same amount…

Q: A new furniture set costs $ 2700. If you make a down payment of $ 300 and finance the rest at a rate…

A: The amount of repayment is the number of installments multiply by the installment amount. and the…

Q: A $2,000 furniture can be financed by paying $50 per month for 4 years. What is the annual nominal…

A: Nominal Interest Rate:It is the rate of interest which calculates before taking inflation. It…

Q: A company rent a building for P50,000 per month for a period of 10 years. Find the accumulative…

A: FV of Ordinary Annuity=C×[(1+i)n−1/i] where: C=cash flow per period i=interest rate n=number of…

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Present value can be found by the interest rate and given period by calculating the present value.

Q: To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the…

A: The APR is the annualized measure of the costs of borrowing, the APR will increase when the cost of…

Q: You want to buy a new sports coupe for $74,700 , and the finance office at the dealership has quoted…

A: The monthly payments is calculated by using fallowing formula Present value P = Present value…

Q: An auto dealer has designed a marketing gimmick. They are asking their customers tinky only $109 at…

A: The monthly payment is the lowest amount which an investor needed to save to get the required amount…

Q: How much is the cash value of the car if the interest rate used is 10% converted monthly?

A: P = PMT x [1 – {(1 / 1 + r)^n} / r] Here, P = Present Value of Payments at the end of year 2 PMT =…

Q: An item is for sale for 7,800, Mr. Bing can pay 2,200 down payment and 240 every end of the month.…

A: First we need to calculate the amount that need to be after down payment. Amount left = Selling…

Q: What is the monthly payment for a 5-year car loan of $14,000 that has an APR of 6% compounded daily…

A: An amortized loan is repaid in equal installments. Each installment comprises interest on loan…

Q: You want to buy a $22,000 car. The car company is offering a 5% interest rate for 60 months (…

A: Installment amount is the amount of periodic payments a borrower has to make to its lender. It…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

A store advertises a motorcycle for 3,000 down payment and 3,000 per month for 15 months. If the interest is 15% compounded monthly, what is the actual value of the motorcycle?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month for the next 30 months. If the rate is 0.75% a month, calculate the present value of the payments to Kangaroo Autos.
The maker of cardboard boxes leases a warehouse and pays $5,000 at the beginning of each month for 5 years. If interest rates are 2.75% compounded monthly, what is the present value (in dollars) of the payments?
The maker of cardboard boxes leases a warehouse and pays $5,000 at the beginning of each month for 5 years. If interest rates are 2.75% compounded monthly, what is the present value (in dollars) of the payments? (Round vour answer to the nearest cent.)
a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is 18% compounded monthly and the first payment is made one month after the purchase?
A car valued at $11,400 can be purchased for 10% down and end-of-month payments of $286.21 for three-and-a-half years. What is the nominal annual rate of interest compounded monthly?
One agency offered a customer a new car for a down payment of $ 35,200.00 and 60 biweekly payments of $ 4,260.76 each. If an interest rate of 7.32% per month compounded biweekly is charged, Calculate the cash value of the car.
A car dealer advertises the sale of a car model for a cash price of P 280,000. If purchased on instalment, the regular downpayment is 15% and balance payable in 18 equal monthly instalments at an interest rate of 1.5% per month. How much will be required monthly payments?
A house is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly a. 100 b. 132 c. 70 d. 121
An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at the end of each month, for the first two years for a car priced at $12,000. The APR on the vehicle is 5.04% and the total term of the loan is 5 years. What is the monthly payment for the remaining three years? Interest is payable during the entire five year period.
A motorcycle is for sale for $20,200. The dealer is willing to sell it on the following terms: No down payment; pay $300 at the end of each of the first 6 months; pay $500 at the end of each month after that until the loan has been paid in full.At a 12% annual interest rate compounded monthly, how many $500 payments will be required?
A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 9% compounded monthly