EBK ENGINEERING ECONOMY
16th Edition
ISBN: 9780133819014
Author: Koelling
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem 16P
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto dealer at 2.9% APR (compounded monthly) and repaid over 48 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 8.9% (compounded monthly) over 48 months. Determine the amount of the instant rebate that would make you indifferent between the financing plans.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You obtained a loan of $25,000 to finance your home improvement project. Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be $1200. What is the APR used for this loan?
Gurpreet already had a balance of $1700 on her credit card when she used it to purchase items worth another $335. The minimum monthly payment is 3% of the outstanding balance or $30 dollars, whichever is greater, and the interest rate is 19.7%, compounded daily. If Gurpreet pays only the minimum each month, how long will it take her to pay off the balance? How much interest would she end up paying?
You obtained a Joan of $25,000 to finance your home improvement project.Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be $1200. What is the APR used for this loan?
Chapter 11 Solutions
EBK ENGINEERING ECONOMY
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - You have decided to purchase a new automobile with...Ch. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- A store is expected to generate $10,000 in earnings next month. How much earnings will be accumulated by the end of the year if the earnings are projected to grow by 30 basis points (0.3%) each month, and if the interest rate is 3.72% APR compounded monthly?arrow_forwardYou borrow $20,000 to purchase a car and will repay the loan in uniform monthly payments for the next 48 months. The first payment is due one month after the purchase of the car. If the interest rate is 1% per month, determine the amount of your monthly car payment. Assuming you make each payment as scheduled, how much total interest will you pay over the four-year period?arrow_forwardParents deposit $5,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 10% interest per year, compounded monthly. The child withdrawals an equal sum twice per year while in college (years 19 through 22). After the last withdrawal at the end of year 22, there is $8,000 remaining in the account. How much was each semi-annual withdrawal in year 19 through 22? Express your answer in $ to the nearest $100.arrow_forward
- How much interest is payable each year on a loan of $3,000 if the interest rate is 12% (simple interest) per year when half of the loan principal will be repaid as a lump sum at the end of five years and the other half will be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? The interest amount is paid at the end of each year. Year. Interest Accrued for Year 1 ? 2 ? 3 ? 4 ? 5 ? 6 ? 7 ? 8 ? Total Interest ?arrow_forwardSuppose you were given a one time gift of $10,000 to put into a savings account. The account earns 3% per year. You are unable to withdraw any money from the account until you retire (assume 35 years). How much will the account be worth when you retire?arrow_forwardA child’s grandparents have opened a ₱60,000 savings account for the child on the day of her birth. The account pays 1/2% compounded semiannually. The child will be allowed to withdraw the money when she reaches the age of 25. What will the account be worth at that time?arrow_forward
- Lindsey plans to deposit her annual bonus into a savings account that pays 3% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2,500. a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8)? c) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8), but also plans to skip the deposits at the end of years 3 and 6?arrow_forwardFill in the table below when P= S9,000, S= $2,000 (at the end of four years), and i = 17% per year. What is the equivalent uniform CR? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year. Complete the accompanying table. (Round to the nearest dollar.) Capital Opportunity Cost of Interest (i =17%) Investment Loss in Value at Beginning of Year of Asset Recovery Amount for Year Year During Year 1 $9,000 $2,500 - X More Info Discrete Compounding; i= 17% Single Payment Uniform Series Compound Amount Compound Amount Sinking Fund Factor Capital Recovery Factor Present Present Factor Worth Factor Factor Worth Factor To Find P Given F To Find F Given A FIA To Find A Given F AIF To Find F To Find P To Find A Given P FIP Given A PIA Given P PIF AIP 0.8547 0.7305 1 1.1700 1.0000 0.8547 1.5852 1.0000 0.4608 1.1700 1.3689 1.6016 1.8739 2.1700 3.5389 5.1405 2 0.6308 3 0.6244 0.5337 0.4561 2.2096 0.2826 0.1945 0.1426 0.4526 4 2.7432 0.3645 5…arrow_forwardTo finance your car, you have decided to take a car Joan in the amount of $20,000 from your credit union. You will pay off this loan over 60 months. If the required monthly payment is $400, what is the effective annual interest rate on this car loan?arrow_forward
- Frasier is 33 years old and just received an inheritance from his parents' estate. He wants to invest an amount of money today such that he can receive $5,000 at the end of every month for 15 years when he retires at age 65. If he can earn 9% compounded annually until age 65 and then 5% compounded annually when the fund is paying out, how much money must he invest today? show solutionarrow_forwardThe price for a building was $ 125,000. How many months will it take to pay for the building if $ 25,000 is paid in advance and then $ 1,000 each month? Consider the compound interest rate of 9% per month. (seneler means years)arrow_forwardA bank account pays 4.5% annual interest, compounded monthly. How much must be deposited now so that the account contains exactly $11,000 at the end of one year? $must be deposited now so that the account contains exactly $11,000 at the end of one year (Do not round until the final answer. Then round to the nearest cent as needed)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education
What is Efficiency?; Author: Marketing Business Network;https://www.youtube.com/watch?v=HtyE1V6jXek;License: Standard Youtube License