Mr. Lang bought a used Chevy Tahoe for $26,500. The value of the Tahoe has decreased 7% per year since he purchased it 12 years ago. How much is the Tahoe worth now? * $59,683.08 $11,092.80 O $4,240 $20,500
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- OLA #10.2 Natalie was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car for $14,000. Buy option: Purchase the car immediately for $30,000. The money is worth 7.70% compounded monthly. a. What is the Discounted Cash Flow (DCF) for the lease option? b. Which is the better option? Lease Option Buy Option Please explain using algebra with detailsOLA #10.2 Natalie was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car for $14,000. Buy option: Purchase the car immediately for $30,000. The money is worth 7.70% compounded monthly. a. What is the Discounted Cash Flow (DCF) for the lease option? b. Which is the better option? Lease Option Buy Option Kindly use all the decimals DO NOT ROUNDOLA #10.3 Dylan purchased two trucks for his warehouse for a total of $54,000. This investment saved him $14,000 every year for 9 years. At the end of year 9, he sells both the trucks for a total of $8,500. A. What is the Net Present Value (NPV) of the investment if the required rate of return is 7%? B. Does the investment meet the required rate of return? Yes No Please reply using algebra with details
- C) flat D) inverted 4. Ali is saving for a downpayment to buy a house. He deposits a fixed amount every quarter in a mutual fund that earns an APR of 10.0% in average. If his account calculates returns quarterly then how much should he deposit each quarter in order to have $50,000 in the account in five years' time? A) $2,280 B) $1852 C) $2,045 D) $1,957 5. Two years ago you purchased a new MPV for $50,000. You financed your MPV for 60 months at 6.15% APR (with payments made at the end of the month). You have just made your 24th monthly payment on your MPV. Assuming that you have made all of the first 24 payments on time, what is the outstanding principal balance (rounded to the nearest dollar) on your MPV loan? A) $17,818 B) $34,925 C) $31,818 D) $23,283REFINANCING A MORTGAGE. USE WOR SHEET 5.4. Lily Nguyen purchased a condominium four years ago for 200,000, paying 1,250 per month on her 162,000, 8 percent, 25-year mortgage. The current loan balance is 152,401. Recently, interest rates dropped sharply, causing Lily to consider refinancing her condo at the prevailing rate of 6 percent. She expects to remain in the condo for at least four more years and has found a lender that will make a 6 percent, 21-year, 152,401 loan, requiring monthly payments of 1,065. Although there is no prepayment penalty on her current mortgage, Lily will have to pay 1,500 in closing costs on the new mortgage. She is in the 15 percent tax bracket. Based on this information, use the mortgage refinancing analysis form in Worksheet 5.4 to determine whether Lily should refinance her mortgage under the specified terms.12–25. Pete Air wants to buy a used Jeep in 5 years. He estimates the Jeep will cost $15,000. Assume Pete invests $10,000 now at 12% interest compounded semiannually. Will Pete have enough money to buy his Jeep at the end of 5 years? PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =
- D3 Miguel would like you to calculate whether he has realized a capital gain or loss on a T-bill he recently sold. He bought the 91-day T-bill for $987,320 with an effective annual yield of 5.25%. Sixty days later, the effective interest rate fell to 4.25% and he sold the T-bill for $996,470. What is Miguel's capital gain on this transaction? a) $ 810 b) $1,150 c) $2,370 d) $3,5307. Mack plans on retiring in 35 years. His account pays 2.9% annual interest compounded annually. If he wants to end up with $50,000, how much does he need to invest today? Variable Value N Missing Variable Value __________________ I% PV PMT Context Sentence: FV P/Y C/Y(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $340,000 Rolls-Royce Phantom. Jack currently has $62,720 that he may invest. He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's and in marriage? Ignore taxes and inflation. Question content area bottom Part 1 The number of years it will take for Jack to win Jill's hand in marriage (Round to one decimal place.)
- D4) Bob buys a property that costs $1,000,000. The property is projected to generate NOI as follows: Year NOI 1 $100,000 2 $105,000 3 $110,000 Bob will own the property for two years. Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. What is Bob’s annualized IRR for the investment in question A. 26.21% B. 14.89% C. 30.47% D. 27.78%Q 35 Rachel purchased a car for $22,000 three years ago using a 4-year loan with an interest rate of 10.8 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) MINIMUM PRICE?Q5. A systems engineer who invested wisely can retire now because she has $2,000,000 in her self-directed retirement account. Determine how many years she can withdraw (a) $100,000 per year, or (b) $150,000 per year (beginning 1 year from now) provided her account earns at a rate of 5% per year. (c) Explain why the increased annual withdrawal from $100,000 to $150,000 per year is important.(Do not use excel)