Show work (excel if possible but show formulas you used in excel): If I buy a...

Show work (excel if possible but show formulas you used in excel):

If I buy a new car and pay $399 a month for 5 years and the maintenance costs are $50 the first year and increase by $200 a year for each year after that, how much money would I have to barrow today at a nominal interest rate of 9% to cover my monthly payment and my yearly maintenance bill?

Solutions

Expert Solution

Amount to borrow today =

$20,837.87

step 1: Value of monthly payments

Monthly payment	399
Number of months	60
Rate	9%

Present value of monthly payments	$19,221.18

Step 2: PV of maintenance expenses assuming end of year payments.

Maintenance
Year	Expense
1	50
2	250
3	450
4	650
5	850

PV of maintenance	$1,616.69

WORKINGS

jeff jeffy answered 3 weeks ago

Next > < Previous

Related Solutions

Show work (excel if possible but show formulas you used in excel): If I buy a...

Show work (excel if possible but show formulas you used in excel): If I buy a new car and pay $399 a month for 5 years and the maintenance costs are $50 the first year and increase by $200 a year for each year after that, how much money would I have to barrow today at a nominal interest rate of 9% to cover my monthly payment and my yearly maintenance bill?

Please use excel and show all work and formulas. (I will give your work a like...

Please use excel and show all work and formulas. (I will give your work a like if you do this) Size (1000s sq. ft) Selling Price ($1000s) 1.26 117.5 3.02 299.9 1.99 139.0 0.91 45.6 1.87 129.9 2.63 274.9 2.60 259.9 2.27 177.0 2.30 175.0 2.08 189.9 1.12 95.0 1.38 82.1 1.80 169.0 1.57 96.5 1.45 114.9 What are the p-values of the t test (for the slope estimate) and F test? What is the coefficient of determination? What is...

PLEASE SHOW ALL WORK IN EXCEL!!!!!!! SHOW CALCULATIONS / FORMULAS IN EXCEL!!!!!!!! Voters arrive at a...

PLEASE SHOW ALL WORK IN EXCEL!!!!!!! SHOW CALCULATIONS / FORMULAS IN EXCEL!!!!!!!! Voters arrive at a polling station at an average of 4 per minute (Poisson) where the service rate is 50 per hour (Poisson). a. What is the average number of voters in the system with 5 voter booths? (10 pts) b. What is the minimum number of voting booths needed to keep the average time in the system under three minutes? (10 pts) PLEASE SHOW ALL WORK IN...

In EXCEL Please: you must show your work in Excel, which includes providing the formulas in...

In EXCEL Please: you must show your work in Excel, which includes providing the formulas in the cells, not just the summary value. You may not earn full points if you do not show your work in detail. JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are...

Please show work and formulas used for excel The SK Industries, Inc. manufactures and sells two...

Please show work and formulas used for excel The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Units Price Accel Active 45,000 $225 Accel Regular 75,000 $155 Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expected to be...

Show all work in Excel With formulas used in cells Question Set 2. A manufacturing operation...

Show all work in Excel With formulas used in cells Question Set 2. A manufacturing operation must periodically purchase bulk quantities of washers. The washers are purchased in boxes of 1000 and are consumed at a constant rate. The operation expects to purchase 20,000 boxes over the coming year. Each box costs $120, the annual holding cost per box is $15, and the cost of placing an order is $120 (regardless of the quantity ordered). For the following questions, use...

1) (note: Please also provide the excel formulas used to solve it ) You work for a...

1) (note: Please also provide the excel formulas used to solve it ) You work for a soft-drink company in the quality control division. You are interested in the standard deviation of one of your production lines as a measure of consistency. The product is intended to have a mean of 12 ounces, and your team would like the standard deviation to be as low as possible. You gather a random sample of 18 containers. Estimate the population standard deviation at...

***Excel is required to solve this problem. Please use excel and show all formulas used in...

***Excel is required to solve this problem. Please use excel and show all formulas used in each cell I would really appreciate the work*** Three-Stage FCFE Model: Biomet Inc., designs, manufactures and markets reconstructive and trauma devices, and reported earnings per share of $0.56 in 1993, on which it paid no dividends. (It had revenues per share in 1993 of $2.91). It had capital expenditures of $0.13 per share in 1993 and depreciation in the same year of $0.08 per...

PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells...

PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells copy paper by the case to office supply stores. Each case of paper costs Parry $15. The operating costs are $30,000 per period. Each period, Parry sells approximately 15,000 cases of copy paper at $35 per case. Texas Office Emporium is requesting an order of 4,000 cases of copy paper in the next period at a price of $25 per case. Since Parry has...

PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells...

Subjects