Question
In: Finance
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000...
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $566.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month).
a. What nominal interest rate is Aerotron
paying on the loan?
enter percentages rounded to 4 decimal places %
b. What effective interest rate are they
paying?
enter percentages rounded to 4 decimal places %
c. How much of the 14th month’s payment is
interest? How much is principal?
d. How much of the 18th month’s payment is
interest? How much is principal?
e. How much of the 22nd month’s payment is
interest? How much is principal?
Solutions
Expert Solution
Rahul Sunny answered 2 years agoRelated Solutions
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000...
Aerotron Electronics has just bought a used delivery truck for
$15,000. The small business paid $1,000 down and financed the rest,
with the agreement to pay nothing for the entire first year and
then to pay $576.83 at the end of each month over years 2, 3, and 4
(first payment is in 13th month).
a. What nominal interest rate is Aerotron
paying on the loan?
enter percentages rounded to 4 decimal places %
b. What effective interest rate are...
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000...
Aerotron Electronics has just bought a used delivery truck for
$15,000. The small business paid $1,000 down and financed the rest,
with the agreement to pay nothing for the entire 1st year and then
to pay $566.83 at the end of each month over years 2, 3, and 4
(first payment is in 13th month).
a. What nominal interest rate is Aerotron paying
on the loan?
b. What effective interest rate are they
paying?
c. How much of the 14th...
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000...
Aerotron Electronics has just bought a used delivery truck for
$15,000. The small business paid $1,000 down and financed the rest,
with the agreement to pay nothing for the entire first year and
then to pay $546.83 at the end of each month over years 2, 3, and 4
(first payment is in 13th month).
a) what nominal interest rate is Aerotron paying the loan?
(please try to show me with goal seek and Excel)
b) what effective interest rate...
Lake Company bought a used delivery truck on January 1, 2017, for $20,000. The delivery truck...
Lake Company bought a used delivery truck on January 1, 2017,
for $20,000. The delivery truck was expected to remain in service 4
years (50,000 miles). Lake's accountant estimated that the truck’s
residual value would be $2,000 at the end of its useful life. The
truck traveled 14,000 miles the first year and 18,000 miles the
second year. Calculate depreciation expense for the truck for 2017
and 2018 using the
• Straight-line method.
• Double-declining balance method
• Units of...
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The...
Cambridge Company purchased a truck on January 1, 2018.
Cambridge paid $15,000 for the truck. The truck is expected to have
a $2,000 residual value and a 6-year life. Cambridge has a December
31 fiscal year end. Using the straight-line method, how much
is the 2019 depreciation expense?
(Enter only whole dollar values.)
"A local delivery company has purchased a delivery truck for $22,000. The truck will be depreciated...
"A local delivery company has purchased a delivery truck for
$22,000. The truck will be depreciated under MACRS as a five-year
property. The trucks market value (salvage value) is expected to
decrease by $2,000 per year. It is expected that the purchase of
the truck will increase its revenue by $11,000 annually. The
O&M costs are expected to be $4,800 per year. The firm is in
the 40% tax bracket, and its MARR is 13.7%. If the company plans to...
"A local delivery company has purchased a delivery truck for $19,000. The truck will be depreciated...
"A local delivery company has purchased a delivery truck for
$19,000. The truck will be depreciated under MACRS as a five-year
property. The trucks market value (salvage value) is expected to
decrease by $2,100 per year. It is expected that the purchase of
the truck will increase its revenue by $11,000 annually. The
O&M costs are expected to be $3,800 per year. The firm is in
the 40% tax bracket, and its MARR is 15.3%. If the company plans to...
Your team asks VTEPS, Inc. to purchase a light duty delivery truck for $15,000. It is...
Your team asks VTEPS, Inc. to purchase a light duty delivery
truck for $15,000. It is anticipated that the purchase of the truck
will increase revenue by $10,000 annually, but have operating
expenses of $3,000 per year. If your teams plans to sell the truck
after two years, what is the minimum that your team can sell the
truck for (i.e., MV) after 2 years in order for this to be
profitable for VTEPS, Inc.?And what is the maximum that...
Year 1 Jan. 8. Purchased a used delivery truck for $61,440, paying cash. Mar. 7. Paid...
Year 1
Jan. 8.
Purchased a used delivery truck for $61,440, paying cash.
Mar. 7.
Paid garage $240 for changing the oil, replacing the oil
filter, and tuning the engine on the delivery truck.
Dec. 31.
Recorded depreciation on the truck for the fiscal year. The
estimated useful life of the truck is 8 years, with a residual
value of $12,900 for the truck.
Year 2
Jan. 9.
Purchased a new truck for $70,560, paying cash.
Feb. 28.
Paid garage...
Big Dog Florists (BDF) just purchased a new delivery truck for $29,000, a light truck. The...
Big Dog Florists (BDF) just purchased a new delivery truck for
$29,000, a light truck. The book value at the end
of the year 4 is $5,011.20
a. Big Dog Florists (BDF) sold its delivery truck after three
years (Prob. 1). Using a 30% tax rate, what is the
after-tax salvage value for the truck if BDF sells
the truck for $15,000?
b. Big Dog Florists (BDF) sold its delivery truck after three
years (Prob. 1). Using a 30% tax...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Look up and use each of these Linux commands. (Each command will have two parts) Summarize...
- What was Lincoln 10 percent plan and what problems did it present?
- A cantilever beam 4m long carries a uniform load of 3.5 kN/m over a portion 1.5m...
- Our next optimization comes from using the brilliant Rabin-Karp substring matching algorithm (RK for short), invented...
- Give an example of an experiment to determine the focal length of a concave lens. (Note...
- Search the Internet to find (at least 2 websites) related to the general field of malware....
- Consider the following schema: Suppliers(sid, sname, address) Parts(pid, pname, color) Catalog(sid, pid, cost) write the following...
ADVERTISEMENT