Erin has just leased a new computer costing $2,300. Calculate her monthly lease payments (beginning of the month) if the lease charges j4=9.00% and she pays off the entire cost over three years.
Q: Your car dealer is willing to lease you a new car for $190 a month for 36 months. Payments are due…
A: Monthly payment (P) = $ 190 Number of monthly payments (n) = 36 Interest rate = 6.5% Monthly…
Q: An employee is earning P 18,000 a month and he can only afford to purchase a car which will require…
A: Maximum amount of EMI that the employee can afford is 30% of his earnings i.e. 30% x P18,000 =…
Q: Matt is saving to buy a new motorcyce. If he deposits $60 at the end of each month in an account…
A: The amount at the end of 15 months can be calculated with the help of future value of annuity…
Q: Miguel purchased a hot tub costing $5,070 by taking out an installment loan. He made a down payment…
A: Given: Hot tub cost = $5,070 Down payment = $1,300 Finance = 24 months Payments each month = $179.77
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: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: USING EXCEL RATE FUNCTION AND APR FORMULA
Q: Your car dealer is willing to lease you a new car for $180 a month for 36 months. Payments are due…
A: The currant value of lease is the present value of all lease payments. We need to use excel PV…
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: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…
A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…
Q: Bob just signed a lease on a rental agrelement. The current rent is $1,580 per month, and the…
A: Given that: Current Rent = $1580 per month Estimation increase = 5% every year
Q: In purchasing an automatic washing machine worth ₱30,000, Lilian pays ₱8,000 cash and agreed to make…
A: The regular payments to be made for the loan taken can be calculated using the PMT function in…
Q: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…
A: Using excel PV function
Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: The Annual percentage rate(APR) is the percentage rate that shows the interest rate calculates on…
Q: Janice has decided to lease a new computer system. The computer sells for $2,094. She plans to pay…
A: Given: Computer cost = $2,094 Years =2 Interest rate = 8.4%
Q: Suppose you are a property owner and you are collecting rent for an apartment. The tenant has signed…
A: The present value is the equivalent value today of future payments to be received in the future…
Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: Annual percentage rate (APR) is the annual cost of funds borrowed. Annual percentage rate is…
Q: A car dealer is willing to lease you a car for $319 a month for 60 months. Payments are due on the…
A: Using excel PV function
Q: Ralph has just borrowed 1200 dollars to purchase a new stereo, at a nominal rate of interest of 12.2…
A: Here, Borrowed amount is $1,200 Interest rate is 12.2% Compounding period is Monthly i.e 12 Monthly…
Q: You are interested in leasing a car for $425 per month, due at the beginning of each month. Using an…
A: The present value of lease payments calculates the present worth of monthly lease payments. It is…
Q: 1. Nelson wants to buy a car that costs $42,000. He has arranged to borrow the total purchase price…
A: Using the PMT function in excel
Q: her own business. She intends to pay back the loan with a series of $2,000 payments at the beginning…
A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…
Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…
A: Given: Particulars Amount Cost of hot tub $5,030 Down payment $1,300 Payments $173.77…
Q: Rudy Anne wants to buy new farm equipment costing P350,000 making a down payment of P50,000. The…
A: In the context of the given question, we are required to compute the monthly amount of payments.…
Q: a) Bianca takes out a 20-year home loan of $480,000 for her property. She makes equal month-end…
A: A mortgage loan is the type of loan that is provided to a borrower by a bank or financial…
Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: A loan is a debt amount borrowed by a person at an interest rate. A borrower of a loan is required…
Q: Jane is presently leasing a small business computer from Eller Office Equipment Company. The lease…
A: Present Value is the value of future cash flows adjusted as per the time value of money. Lease…
Q: You want to buy a new sports car from Muscle Motors for $44,000. The contract is in the form of an…
A: The monthly payment can be calculated with the help of present value of annuity due function.
Q: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How…
A: The total number of employees is 50 and the total bonus to be received is $60,000 (50 employees ×…
Q: Houda is going to lease a car for one year. She has 2 choices: Make a monthly lease payment of $400…
A: interest rate =1% period =12 months monthly lease =$400 Entire lease payment today =$4000
Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…
A: Introduction: Compound interest is the interest generated on the initial principle plus the interest…
Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: The APR is used for representing the interest rate paid on the outstanding loan balance. It takes…
Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…
A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…
Q: Jeffrey secured a 3-year car lease at 5.60% compounded annually that required her to make payments…
A: Solution Given Rate of interest 5.60% compounded annually Number of period 3 year…
Q: Ben Halls is trying to decide whether to lease or purchase a new car costing $18,000. If he leases,…
A: An asset can be procured by choosing either of options i.e. lease or purchase option. To select the…
Q: Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease…
A: Annuity refers to series of annual payment which are paid or received at start or end of specific…
Q: The length of his lease is 5 years. If the average charge for each car repair by his shop is P1,000.…
A: Answer with all calculation are as follows:
Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…
A: Monthly payments interest rate is calculated by excel function RATE, where the inputs are: pv:…
Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: A couple is trying to decide between renting or buying a house. They could buy a new home with a…
A: It is required to compare the present value of the cost of both the options. The option with the…
Q: A client wants to save $ 20,000 for a year starting from January at an initial effective rate of…
A: Answer with all calculations are as follows
Q: Bisa is leasing a vehicle worth $20,000, with a down payment of $1000 and equal payments at the…
A: The concept of the time value of money states that the money earned earlier is more precious than…
Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…
A: Future Value The future value is the amount that will be received at the end of a certain period.…
Q: You had a 15 year mortgage of $300,000 for five years and made payments of $3,500 per month. Now…
A: Given, Mortgage = 300000 Period = 15 years or 15*12 = 180 periods Payment = 3500 per period Interest…
Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…
A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…
Q: An employee is earning P 18,511 a month and he can only afford to purchase a car which will require…
A: salary =18511 monthly payment =0.3×18511=5553.3 monthly payment =5553.3 Period =4 years =48 months…
Q: Bailey just rented an apartment for $900 per month. She was told that the rent will increase 5.5%…
A: Renting means allowing someone to use a certain property and he must not be the owner of the…
Q: Carmen Hernandez has saved $8,000 for a deposit on a car. The highest monthly payment she can afford…
A: Deposit amount = $ 8,000 Monthly payment = $ 455 Annual interest rate = 11% Monthly interest rate =…
Step by step
Solved in 3 steps with 1 images
- You are leasing some furniture for your apartment. The monthly lease is for $395/month, payable at the beginning of the month. If your personal cost of capital is a 3% nominal annual rate, what is the present value of a one-year lease?Your car dealer is willing to lease you a new car for $399 a month for 48 months. Payments aredue on the first day of each month starting with the day you sign the lease contract. If your costof money is 3 percent, what is the current value of the lease?Your car dealer is willing to lease you a new car for $180 a month for 36 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.2 percent, what is the current value of the lease?
- A car dealer is willing to lease you a car for $319 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, compounded monthly, what is the current value of the lease?Reginald is about to lease an apartment for 36 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,000 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $32,484. What is the implied monthly discount rate for the rent? If Reg is earning 1.1% on his savings monthly, should he pay by month or make the one-time payment?Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,300 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $15,180. What is the implied monthly discount rate for the rent? If Reg is earning 0.3% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent?
- Houda is going to lease a car for one year. She has 2 choices: Make a monthly lease payment of $400 on the first day of each month; or pay the entire lease payment of $4000 today. Assume she an earn 1% every month. Which is her best choice. Show your calculations.el buys a new pickup truck on a 72 - month lease at 5 % compounded annually with $ 5,000 down . If her monthly payments are $ 637.92 and the residual value is $ 6,774 , what was the purchase price the truck ? For full marks your answer ( s ) should be rounded to the nearest centHelen is buying a $12,375 car with a $3,000 down payment, followed by 36 months of $325. The down payment is made immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying? What effective interest rate?
- Ms. Susan is renovating her townhouse for a total price of $18,000. The work will be done in a month and she will start to rent the house to Mr. Sam with a monthly rental of $1,200. For how long time (in months) can Ms. Susan can break even from the renovation cost? (Complete the analysis in MS Excel Sheet and copy your analysis and answer here). Assume: • The annual maintenance cost is approximately $1,200. • Ms. Susan covers utility and electric bills which are approximately $150 every month. • The interest rate is 0.5%. • Present Value = Future Value/(1+i)^nBisa is leasing a vehicle worth $20,000, with a down payment of $1000 and equal payments at the beginning of every two weeks for three years. What is the size of each lease payment if the cost of borrowing is 6.75% compounded monthly and the residual value is $10,500? The Textbook answer says $147.34........You are considering leasing a car for 48 months where the advertisement says that monthly payments are $399 with $5,000 due at signing. You have seen elsewhere that the market value of the new car is $35,000 and that the expected market value in 4 years is $25,000. What effective annual rate (EAR) are you paying for this lease?
