menu
bartleby
search
close search
Hit Return to see all results

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.

Question

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.

 

check_circleAnswer
Step 1

Calculation of Present Value of Payments:

fullscreen
Step 2

Excel Workings:

...
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Finance

Time Value

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired f...

question_answer

Q: a. Use the appropriate formula to find the value of the annuity b. Find the interest. Periodic Depos...

A: When payments are equal and made at fixed intervals, the series is an annuity. If the annuity is mad...

question_answer

Q: What is the net present value of a project with the following cash flows if the required rate of ret...

A: Net Present Value (NPV)NPV is the method of evaluating the worth of an investment or project by dedu...

question_answer

Q: a-d. How do I calculate profit, revenue and cost variances and how are they related?

A: Since the question has four sub parts, only first three of them have been answered. Please post the ...

question_answer

Q: Barbie is going to borrow $5,000 to help write a book.  The loan is for one year and the money can e...

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan...

question_answer

Q: What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be r...

A: As a fist step, let's shifts ourselves to the end of t  = 10 years.Annuity, A = $ 2,500; n = number ...

question_answer

Q: (#11) Genoa Company is considering a new investment whose data are shown below. The equipment would ...

A: Approach:We will first estimate the initial investment, i.e cash flow at t = 0We will then plot the ...

question_answer

Q: The following problem refers to the stock table for ABC Inc.​ (a tire​ company) given below. Use the...

A: A.The amount of shares traded yesterday is nothing but the total volume of shares which is 591,500 s...

question_answer

Q: Part 1 and Part II are independent. Please answer both parts. Part I: You are advising company ABC o...

A: Part I:Company ABC should choose Option #1. Because after one year Option #1 will have a present val...

Sorry about that. What wasn’t helpful?