Question

In: Finance

9.Just recently having accepted a full time position at your dream job, you go in search...

9.Just recently having accepted a full time position at your dream job, you go in search of a new car. You found one you like a lot and you consider a three-year lease. It will cost you $360 per month, plus an additional $15,000 at the end of the lease if you want to purchase it. If (1) your opportunity cost of money is about an APR of 7.0%, and (2) you intend to purchase the car after the lease, what will be the total investment you will have made in the car when the lease is up and you purchase it?

A. about $26,337

B. about $29,380

C. about $15,000

Solutions

Expert Solution

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

You just graduated college with your Bachelors Degree and accepted a job offer at your dream...
You just graduated college with your Bachelors Degree and accepted a job offer at your dream company. You decided to celebrate by purchasing the vehicle of your dreams. Pictured is a Dodge Challenger HellCat see picture above for $58,995). You have a 720 credit score, therefore you were able to get a 5% interest rate on a 7 year loan. You will be making monthly payments. Using Excel, prepare a professional amortization schedule for the entire 7 years. It must...
You just started your first full time job out of college. You recall from your finance...
You just started your first full time job out of college. You recall from your finance course the importance of starting to save early for retirement. You plan on making deposits of $215 per pay check into a stock account and $130 per pay check into a bond account. You are paid every two weeks (26 pay checks per year). It is your plan to make these deposits for the next thirty-years. You expect that you will earn 8.75% per...
You just started your first full time job out of college. You recall from your finance...
You just started your first full time job out of college. You recall from your finance course the importance of starting to save early for retirement. You plan on making deposits of $215 per pay check into a stock account and $130 per pay check into a bond account. You are paid every two weeks (26 pay checks per year). It is your plan to make these deposits for the next thirty-years. You expect that you will earn 8.75% per...
You recently got promoted at your job. You have since decided to buy your dream car...
You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $93,000 seven years from today. After budgeting your expenses, you decide that you can save $9,000 per year at the end of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later? with financial...
You recently got promoted at your job. You have since decided tobuy your dream car...
You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 six years from today. After budgeting your expenses, you find you can start with $2000 today and decide that you can save $12,000 per year at the beginning of each year. Given a market interest rate of 6%, will you be able to purchase your car at the end of year 6? Would you be able...
Assume you just accepted a new job offer and you are negotiating your contract. You are...
Assume you just accepted a new job offer and you are negotiating your contract. You are offered the opportunity to take deferred salary. Would you accept this offer? Why or why not? If not, under what circumstances would you consider accepting a deferred salary? If you were the owner of a business, would you want to pay your employees a deferred salary? Why or why not?
Speak to a person with a full-time paid position and write a job description for their...
Speak to a person with a full-time paid position and write a job description for their position. Include job title, qualifications (education and skills), job duties (at least 5), job summary and worker specifications. Then go to ONET and find a similar position on that site and provide suggested salary information for your position for the New York City area. Post this information online in the job description forum and provide feedback to one other person's posting.
Before you started applying for university, a job recruiter offered you a full-time cashier position at...
Before you started applying for university, a job recruiter offered you a full-time cashier position at a department store earning an after-tax salary of $21,000 per year. However, you turn down this offer and attend your first year of university. The additional monetary cost of university to you, including tuition, supplies, and additional housing expenses, is $32,000.
MINICASE A JOB AT S&S AIR You recently graduated from college, and your job search led...
MINICASE A JOB AT S&S AIR You recently graduated from college, and your job search led you to S&S Air. Because you felt the company’s business was taking off, you accepted a job offer. The first day on the job, while you are finishing your employment paperwork, Chris Guthrie, who works in Finance, stops by to inform you about the company’s 401(k) plan. A 401(k) plan is a retirement plan offered by many companies. Such plans are tax-deferred savings vehicles,...
8. You started a new full-time job a few weeks ago and you just learned that...
8. You started a new full-time job a few weeks ago and you just learned that your family owns part of a business that provides services to your employer. What should you do? Quit your job immediately. Disclose the conflict of interest to your manager. Report the situation to a third-party committee. 9. Which of the following signs indicate weak ethical culture in an organization? Select ALL relevant signs. The company has a channel for employees to report misconduct anonymously....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT