FINANCIAL ACCOUNTING (LL W/CONNECT) >IP<
4th Edition
ISBN: 9781260063035
Author: SPICELAND
Publisher: MCG CUSTOM
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Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:
1. Pay $35,000 for the car today.
2. Pay $4,000 at the end of each quarter for three years.
Required:
1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. (FV of $1, PV of $1, FVA of $1, and PVA
of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Present Value
Option 1
Option 2
1-b. Which option gives him the lower cost?
Option 1
Option 2
es
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:
1. Pay $28,000 today for the car.
2. Pay $2,600 at the end of each quarter for three years.
Required:
1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value.
1-b. Which option gives him the lower cost?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value.
Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1,
and PVA of $1)
Present Value
Option 1
Option 2
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:1. Pay $35,000 for the car today.2. Pay $4,000 at the end of each quarter for three years.Required:Assuming Denzel uses a discount rate of 12% (or 3% quarterly), determine which option gives him the lower cost.
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5 Steps to Setting Achievable Financial Goals | Brian Tracy; Author: Brian Tracy;https://www.youtube.com/watch?v=aXDuLxEJqBo;License: Standard Youtube License