12 8&9 HomeworkSuomaYou have reached an agreement with an auto dealer regarding a new car. She has offered you a trade-in allowance of $7 000 on yourold car for a new one that she has "reluctantly reduced to only $32 000 (before trade-in). She has further agreed upon a contract thatrequires you to pay $471.78 each of the next 60 months, beginning one month from today, What is your interest rate, expressed as anannual percentage? Give your answer to the nearest 0.01% With your instructor's approval, write a computer program or use aspreadsheet to solve the problemThe Interest rate is 0.03%

A loan is an agreement where an amount is forwarded in exchange for interest being paid as well…

You have reached an agreement with an auto dealer regarding a new car. She has offered you a trade-in allowance of $7 000 on your old car for a new one that she has "reluctantly reduced to only $32 000 (before trade-in). She has further agreed upon a contract that i requires you to pay $471.78 each of the next 150 months, beginning one month from today. What is your interest rate, expressed as an annual percentage? Give your answer to the nearest 0.01s With your instructor's approval, write a computer program or use a spreadsheet to solve the problem the interest rate is 0.03 %

You have reached an agreement with an auto dealer regarding a new car. She has offered you a trade-in allowance of $7 000 on your old car for a new one that she has "reluctantly reduced to only $32 000 (before trade-in). She has further agreed upon a contract that i requires you to pay $471.78 each of the next 150 months, beginning one month from today. What is your interest rate, expressed as an annual percentage? Give your answer to the nearest 0.01s With your instructor's approval, write a computer program or use a spreadsheet to solve the problem the interest rate is 0.03 %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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N1 28. A car dealer is offering a 5-year loan (starting today) at 6% on a vehicle costing $35,999 plus $2,000 for dealer preparation (both before tax of 6.5% ). The deal also has the following terms: no money down and the first payment will occur in two months' time. How much is each monthly payment? A. $782.38 B. $793.75 C. $797.72 ∗⋆⋆ D. $817.65
7. The CFO has negotiated a cheaper deal with mCommerceBank, a competitior of eCommerceBanque.The bank has agreed to provide loan of $2102, for 1 year and the payments are required to be paid monthly (at the end). The annualized interest rate charged by the bank is 9% pa. Compute the monthly payment amount to be made to the mCommerceBank. (i) Enter the values of number of periods, Present Value and Type in cells C43, C46 and C48 respectively. (ii) Write a formula in cell C45 to convert the annual rate to monthly interest rate.(iii) Write a formula in cell C50 to compute the monthly payments to be made to the bank.
LO 12.4 Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May Round to the nearest cent if required.
5.-DO IT IN EXCEL, AND SHOW THE FORMULASThe company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment? A) $185,674.92 B) None of these amounts C) $311,662.137 D) $151,841.86 (Choose one option) D) $151,841.86
Pm.6 You want to buy a new sports car from Muscle Motors for $55,000. The contract is in the form of an annuity due for 48 months at an APR of 7.00 percent. What will your monthly payment be? Multiple Choice $1,335.59 $1,283.22 $1,309.41 $1,317.04 $1,243.93
Q6: Ethan secured a 4-year car lease at 6.20% compounded annually that required her to make payments of $888.30 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $3,750.Round to the nearest cent
Wade Ellis buys a car for $15,002.71. He puts 10% down and obtains a simple interest amortized loan for the balance at 10 and 1/2% interest for four years. After three years and two months of making the minimum monthly payment, he sells his car. Find the unpaid balance on his loan. (Round all intermediate calculations to the nearest cent. Round the answer to the nearest cent.)
5.-DO IT IN EXCEL, AND SHOW THE FORMULASThe company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment? A) $185,674.92 B) None of these amounts C) $311,662.13 D) $151,841.86
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?
5. HBC Inc. buys on terms of 2/10, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to P1,750,000 per year. On average, how much “free” trade credit does HBC receive during the year? (Assume a 365-day year.)a. P25,293.45b. P47,945.21c. P68,651.33 d. P75,000.00e. P95,890.42
EB9. 12.4 Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months.Show the entries for the initial purchase, the partial payment, and the conversion. EB10. 12.4 Use information from EB9. Compute the interest expense due when Airplanes Unlimited honors the note. Show the journal entry to recognize payment of the short-term note on October 18
H4. Resolute Health buys $600,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Resolute terms of 2/10, net 30. Currently, the hospital is paying the supplier the full amount due on Day 30, but it is considering taking the discount, paying on Day 10 and replacing the trade credit with a bank loan that has a 12 percent rate. Assume 360 days per year. What is the amount of free trade credit that the organization obtains from Cardinal Health? Format is $xx,xxx.xx What is the total amount of trade credit offered by Cardinal? Format is $xx,xxx.xx What is the approximate annual cost of the costly trade credit? Format is xx.xx% Should the organization replace a portion of the trade credit with the bank loan? Format is Yes or No If the bank loan is used, how much of the trade credit should be replaced? Format is $xx,xxx.xx

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