In: Finance

You purchase an antique car today for $41,774

You expect the price of the car to rise by 4% per year for the next 7 years.

What do you expect the price of the car to be in year 7?

Here we will use the following formula:

**FV = PV * (1 + r%) ^{n}**

where, FV = Future value, PV = Present value = $41774, r = rate of interest = 4%, n= time period = 7

now, putting theses values in the above equation, we get,

FV = $41774 * (1 + 4%)^{7}

FV = $41774 * (1 + 0.04)^{7}

FV = $41774 * (1.04)^{7}

FV = $41774 * 1.31593177924

FV = $54971.73

**So, the price of the car in year 7 will be
$54971.73.**

You purchase an antique car today for $46,260
You expect the price of the car to rise by 6% per year for the
next 9 years.
What do you expect the price of the car to be in year 9?

You will buy a new car today. You will borrow the
full price of the car. You will get a
FIVE year loan that will be paid back
annually. It will take you the full
FIVE years to pay back the loan. (In other
words, you will not pay it off early.) You will pay back
the same amount every year (an annuity). The auto dealership offers
you 3 choices.
1) Pay $30,000 for the car at 0% interest for the
FIVE years.
2) Pay $28,000 for the car at...

You are thinking about leasing a car. The purchase price of the
car is $35,000.The residual value (the amount you could pay to keep the car at
the end of the lease) is $15,000 at the end of 36 months. Assume the first lease payment is due one month after
you get the car. The interest rate implicit in the lease is 7% APR, compounded monthly. What will be your lease payments for
a 36-month lease? (Note: Be careful not...

you are thinking about leasing a car the purchase price of the
car is 26000. the residual value. the residual value ( the amount
you could pay to keep the car at the end of the lease) os 13,000 at
the end of 36 months. assume the first lease payment is due one
month aftrr you get the car . the interest rate implicit in the
lease 6% apr compounded monthly . what will be your lease payments
for a...

You are interested in buying a brand new Jalopy and expect the
purchase price to be $19,000. The car dealership can offer
financing at a 6% interest rate over 6 years. If you put $1,000
down towards the purchase and accept the financing terms,what will
your monthly payment for the loan be?
Please Show the excel formula

Suppose you intend to purchase a new car after you graduate. You
expect to put $5,000 down and finance the balance over a 5-year
period. The maximum amount you are willing to pay each month is
$600. What is the maximum price you can pay for the car in other
words, how much you can afford to pay for the car, assuming an
interest rate of 8% per year, compounded monthly?

What will your monthly payment be for a car you purchase for
$70,000 today where the bank will finance it for you for 72 months
at 2.99% (APR)?

You are about to buy a home; the purchase price of the car is
$200,000 and you are paying 10% of that amount as a down payment
and financing the remainder. Your mortgage loan terms are
30 years of monthly payments at an annual rate of
3.25%.
How much are your monthly mortgage payments?
Over the life of the loan, how much did you pay in
interest
a) Suppose on January 1 you deposit $2,750 in an account that
pays...

You are buying a gently used car today at a price of $11,480.
You are paying $700 down in cash today and financing the balance
for 44 months at an annual interest rate of 8.50%. What is the
amount of each monthly loan payment? Dollar value
Question 7 options:
$277
$284
$291
$298
$305

You are buying a previously owned car today at a price of
$9,470. You are paying $800 down in cash and financing the balance
for 36 months at 7.8 percent, compounded monthly. What is your
monthly payment amount?
A.
$332.95
B.
$239.46
C.
$258.02
D.
$270.89
Ghanata Oil has a well that will produce an annual cash flow of
$236 million next year. The cash flow is expected to increase by
3.5 percent per year indefinitely. What is the well...

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