Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for the next 50 months. Nissan Motors next door does not offer free credit but will give you $9000 cash. If the rate of interest is 0.63% a month, which company is offering the better deal?
Q: You are selling your car and the dealership says to you, "we can either give you $15,000 today or we…
A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…
Q: 3. Abdulbaasit would like to buy a new car that costs $ 30000. The dealership offers to finance the…
A: Option-1 Time period is 5 years Interest rate compounded monthly is 2.4% Option-2 Time period 5…
Q: You want to buy a new sports coupe for $81,500, and the finance office at the dealership has quoted…
A: i= 0.0525 (6.3%/12) n = 60
Q: u paid $10,000 for a car whose value is depreciating by 15% per year, compounded annually. Assuming…
A: Depreciation : Depreciation is the reduction in the cost of the assets due its day to day use and…
Q: 7. Alset Motors is offering the 2020 Tesla Model S Sedan (basic model) for $89,900. You "wheel and…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: How much would you have to pay monthly for the car you want to buy if the cost of the car is $…
A: You can use the following formula to calculate monthly payment of your car loan. Persent value of…
Q: A commercial bank will loan you $27,000 for five years to buy a car. The loan must be repaid in 60…
A: EMI or equated monthly installment is referred to as an amount payable, which is paid in each and…
Q: which company is offering the better deal
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has…
A:
Q: You have just purchased a new car! You made a down payment of $5,000 and financed the balance.…
A: Given:Down payment from today => $5,000Monthly payment => $600Term period => 48 months (4…
Q: You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order…
A: Here, Note: As payment period is not given in the question, we are assuming it as yearly payments…
Q: You need to have 59,173 dollars to buy a new car 5 years from now. How much do you need to save at…
A: Annuity is a no. of payment which are equal in size and made in equal interval of time. Person…
Q: 9. Shirley Stewart is planning to buy a Toyota hybrid for $18,789 with $1,100 down and plans to…
A: The monthly payment amount can be computed with the help of present value of annuity function.
Q: You have just purchased new goods worth 10,000 EUR from your supplier. Your supplier offers you to…
A: Trade credit can be defined as the deal with the suppliers to receive goods without making an…
Q: Suppose that you decide to buy a car for $60,000, including taxes and license fees. You saved…
A: Monthly payments are the re-payments of a loan which is a combination of principal amount &…
Q: ou are making car payments of $576 per month for the next 3 years. You know that the car loan has an…
A: Initial price of car will be the present value of all monthly payments. Initial price can be…
Q: Your company wants to buy a new piece of machinery for $2.3 million. You will pay for 15% of the…
A: Weighted Average Cost of Capital: When a firm's weighted average cost of capital (WACC) is…
Q: You want to buy a $27,000 car. The company is offering a 4% interest rate for 48 months (4 years).…
A: EMI is defined as an amount payable for each and every month to the bank or the financial…
Q: Suppose that you decide to buy a car for $61,000, including taxes and license fees. You saved…
A: Price of car 61,000 Downpayment 11,000
Q: Finally, you have decided to buy a car. You are able to negotiate the price down to $12,000. You…
A: given, r = 2.5% n = 3 m =12 p =12000 applying formula for monthly payment:…
Q: Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license…
A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…
Q: 1. You and the dealer have agreed upon the purchase price for a new automobile. The purchase price…
A: Loan: It is the amount that the lender gives to the borrower & in return charge interest on…
Q: You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount…
A: PMT is the periodic payment.
Q: You have just purchased a new automobile costing $24000. the trade-in you have is valued at $6000.…
A: After trade in value the cost remains at $24000 -$6000 = $18000. This much needs to be financed. The…
Q: 6. A) If a company will pay $100,000 for a truck that will increase deliveries to be made, giving an…
A: Net present value is used as a tool to value a project or investment that adds to a business entity.…
Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…
A: Monthly Payment: It is the amount that is paid at the end of each month to the lender of the bond by…
Q: You want to but a $27,000 car. The company is offering a 3% interest rate for 60 months (5years).…
A: You want to but a $27,000 car. The company is offering a 3% interest rate for 60 months (5years).…
Q: You want to buy a $24,000 car. The company is offering a 2% interest rate for 48 months (4 years).…
A: Calculate the monthly payment. Therefore, the monthly payment is $520.68.
Q: You are considering purchasing a new car that will cost you $32,000. The dealer offers you 4.9% APR…
A: Monthly payment for amount financed is calculated by present value of ordinary annuity formula.…
Q: Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Bahwan Automobiles is offering free credit of OMR25000 on a new corolla car. You pay OMR3000 down…
A: Financing option from OTE motors is better option. Here is the working shown below:
Q: A car dealership is offering to roll over the amount owed on your car into a new loan so you can…
A: LOAN AMOUNT LEFT 5406.77 ADDITION LOAN AMOUNT 29905.87 NEW TOTAL LAON AMOUNT 35312.64 INTEREST…
Q: A store manager plans to exchange his old computer at the end of four years for a newer one worth…
A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…
Q: t purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within…
A: Supplier provide credit for payment but due to this default on loan occurs but due to this they give…
Q: You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 21. You can buy a car advertised for $12,000 on the following terms: (a) pay $12,000 and receive…
A: Time value It tells that the money today received by the individual has more value than receiving…
Q: A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a…
A: When the payment is made at the end of each year for a specified number of years then we term it as…
Q: Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for…
A: Formulas: For Toyota: Total cost = Down payment + (Amount*(1-(1+rate)^-periods)/rate…
Q: Fast Eddie's Used Cars will sell you a 1989 Mazda Miata for OMR5,000 with no money down. You agree…
A: Working of the payment made to buy the used car is shown as follows:
Q: You want to buy a car. The loan amount will be $33,000. The company is offering a 2% interest rate…
A: The Formula to find the monthly payment for an installment loan is called the Equal Monthly…
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: You are ready to buy a new car. You can afford to repay $300 each month for 60 months (paid at the…
A: In this question we require to calculate the amount we can spend on car i.e. present value of the…
Q: When interest rates are low, some automobile dealers offer loans at 0% APR, as indicated in a 2016…
A: The dealers offer various payment alternatives to the buyer. The buyer should select the alternative…
Q: 2. Rearden Metal needs to order a new blast furnace that will be delivered in one year. The…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment.
Q: Answer the following probiems: 1. The buyer of a car pays P 169,000 cash and P 12,000 every month…
A: Solution:- Cash price means the amount payable in today’s terms. So, cash price = Down payment +…
Q: 1. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford…
A: Amount saved $4,000 Rate is 8% Amount of payment is $500.
Q: You want to purchase a car with a sticker price of $25,000.The car dealer offers you a $2,000…
A: Note: I am supposed to provide the solution to the first question only. Please repost question no…
Q1)Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for the next 50 months. Nissan Motors next door does not offer free credit but will give you $9000 cash. If the rate of interest is 0.63% a month, which company is offering the better deal?
Formulas:
For Toyota
Total cost = Down payment + (Amount*(1-(1+rate)^-periods)/rate
-------------------------
For Nissan
Total cost = Amount - discount
Step by step
Solved in 2 steps
- Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.Shonda & Shonda is a company that does land surveys and engineering consulting. They have an opportunity to purchase new computer equipment that will allow them to render their drawings and surveys much more quickly. The new equipment will cost them an additional $1.200 per month, but they will be able to increase their sales by 10% per year. Their current annual cost and break-even figures are as follows: A. What will be the impact on the break-even point if Shonda & Shonda purchases the new computer? B. What will be the impact on net operating income if Shonda & Shonda purchases the new computer? C. What would be your recommendation to Shonda & Shonda regarding this purchase?Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for the next 50 months. Nissan Motors next door does not offer free credit but will give you $9000 cash. If the rate of interest is 0.63% a month, which company is offering the better deal? Select one: a. Nissan 9556 Cash b. Nissan- 9000 Cash c. Toyota- 9000 cash d. Toyota- 9556 Cash
- Bahwan Automobiles is offering free credit of OMR 25000 on a new corolla car. You pay OMR 3000 down and then OMR 500 a month for the next 25 months. OTE Motors in Sur does not offer free credit but will give you OMR 3,000 off the list price. If the rate of interest is 5 % a month, which company is offering the better deal?A tech company still focuses on a relatively small geography, but deliveries have increased, so the company decides to purchase a new delivery vehicle. The cost, in dollars is $104,500. They take out a 5-year "note" to pay for the vehicle, with 4% interest due at the beginning of each year. Does this mean that the interest yearly is 0.04*(104500/5) or 0.04*104500?A man bought a refrigerator for P500 down and P300 per month for 24 months. The same brand of refrigerator could have been purchased for P6,750 cash. What nominal annual interest rate is the man paying?
- An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $469. Note that 72 payments × $469 per payment = $33,768, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.)An auto dealership is advertising that a new car with a sticker price of $33,408 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $464. Note that 72 payments × $464 per payment = $33,408, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.) Enter your answer as a percentage. If required, round your answer to one decimal digit.In August 2008, a car manufacturing company was offering the choice of a 3.3% loan for 72 months, or $3000 cash back on the purchase of a $25,377 car. (a) If someone took the 3.3% loan offer, how much will the monthly payment be? (b) If someone took the $3000 cash-back offer and can borrow money from their local credit union at 7.6% interest compounded monthly for six years, how much will the monthly payment be? (c) Which of the two offers is more favorable?
- The Patel Company has several financial issues to solve. As the company’s Financial Analyst you have been asked to answer the following 2 questions: Their bank will lend them $100,000 for 90 days at a cost of $1,200 interest. What is the company’s effective annual rate? A major supplier has granted credit terms of 1/10 N120. Assuming the company can borrow any amount of money at the rate you have calculated above (in part 1), should the company take the discount? (Your answer must be supported with a calculation of the cost of not taking the discount – using either simple or effective annual rate)21. You can buy a car advertised for $12,000 on the following terms: (a) pay $12,000 and receive a $1,000 rebate from the manufacturer, or (b) pay $250 a month for 4 years, for total payments of $12,000, implying 0% financing. Which is a better deal if the interest rate is 1% per month?Kangaroo Autos is offering free credit on a new $14,000 car. You pay $1,400 down and then $420 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,080 off the list price. a. If the rate of interest is 0.75% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Which company is offering the better deal? multiple choice Kangaroo Autos Turtle Motors