1. You and the dealer have agreed upon the purchase price for a new automobile. The purchase price is $38,000. In addition, sales tax of $2,280, a documentation fee of $500 is added to you purchase price. You make an initial payment of $5,000 and seek to finance the remaining balance. Your automobile dealer has a finance opportunity which will allow you to defer your first payment for 6 months. Your car payments will be paid each monthly over a 3-year period beginning the first month after the 6 months deferral period. The interest rate is 6% per year for the duration of the loan and interest accrue monthly during the 6 months' deferral period. a. Draw the cash flow diagram from your perspective. b. What are your monthly payments? You decide to pay off your loan when you make your 24th payment. What will be your total 24th payment?

Q: A Honda car can be purchased by paying a down payment of P150,000 and the balance to be paid with…

A: Here, Interest Rate is 15% Compounded Semi-annually Details of First Option: Down Payment is…

Q: e net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years.How much was…

A: Amortization is the allocation of the cost of an intangible asset over its life. The maximum life of…

Q: u paid $10,000 for a car whose value is depreciating by 15% per year, compounded annually.  Assuming…

A: Depreciation : Depreciation is the reduction in the cost of the assets due its day to day use and…

Q: What monthly payment will be required for the individual to make if the car is financed over a…

A: Compound interest is the amount of interest paid on interest which will grow the interest on loans…

Q: Suppose you purchase a car for a total price of $25,445, including taxes and license fee, and…

A: Given:

Q: After deciding to acquire a new car, you can either lease the car or purchase it with a three-year…

A: Lease is a way to get the asset for a fixed time period by paying periodicals payments to other…

Q: You have just purchased a new car! You made a down payment of $5,000 and financed the balance.…

A: Given:Down payment from today => $5,000Monthly payment => $600Term period => 48 months (4…

Q: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

Q: An auto dealer agrees to sell a used car for $1,000 down and payments for 3 years at $550 per month.…

A: according to the question given, downpayment = $1000 monthly payment (A) = $550 interest rate (R) =…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 48 months…

A: MONTHLY PAYMENT FORMULA: PMT=P×rm1-1+rm-nwhere,p = loan amountr = APRm = frequency of compoundingn =…

Q: After deciding to buy a new car, you can either lease the car or purchase it on a three-year loan.…

A: The decision regarding whether to buy the asset which here is the car or to opt for the lease…

Q: A metallurgist purchases a car for total cost including tax and license of $35,295.66. If the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Robyn is considering the purchase of a new car that sells for $34,000. Čalculate her monthly payment…

A: Using the PMT function

Q: Your parents obtain a car for P1,500,000.00. The agreed payment is 5 years at monthly amortization…

A: Monthly payment of a loan is given by L = E(1-(1+r)-n)/r Therefore,  E = monthly payment = ? L =…

Q: A truck costing $114,000 is paid off in monthly installments over four years with 6.3​% APR. After…

A: given, p=$114,000 r=6.3% m=12 n=4

Q: 1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal…

A: Loan amount = 200,000 Monthly interest = 2% Number of monthly payments = 30

Q: In order to buy a new car, you finance $33,000 with no down payment for a term of five years at an…

A: Here, Cost of Car is $33,000 APR is 6% Time Duration of loan is 5 years Compounding Period is…

Q: In order to buy a new car, you finance $24,000 with no down payment for a term of five years at an…

A: Given, Amount of finance with no down payment  = $24000 Given that APR   = 6% The  value of the car…

Q: Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: a man purchased a car with a cash price of 350,000.00 He was able to negotiate with the seller to…

A: Solution:- Calculation of the monthly payment and remaining balance paid as follows under:-

Q: In order to buy a new car, you finance $20,000 with no down payment for a term of five years at an…

A: Given, Loan Amount  = $20000 APR   = 6% time  (n)  = 5 years = 5   Value of car had decreased by 25%…

Q: You have just purchased a new automobile costing $24000. the trade-in you have is valued at $6000.…

A: After trade in value the cost remains at $24000 -$6000 = $18000. This much needs to be financed. The…

Q: A car is to be purchased in monthly payments of ₱ 17,000.00 for 4 years starting at the end of 4…

A: Monthly payment (M) = P 17000 n = 4 years = 48 payments r = 12% per annum = 1% per month First…

Q: A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment…

A: The amount financed can be calculated as cost of asset less down payment.

Q: A truck costing $119,000 is paid off in monthly installments over four years with 6.2​% APR. After…

A: Truck value =$ 119000 Interest Rate(r) = 6.2% APR = 6.2/12 = 0.516667% Total Years = 4 Total…

Q: Suppose you purchase an automobile for a selling price of $32,000. You make a down payment of 5% of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 1. At what interest rate will a principal of ₱9,500 accumulate to ₱15,000 in 2 years compounded…

A: Future value (FV) = P 15000 Investment amount (PV) = P 9500 Period (N) = 2 Years Number of…

Q: You have reached an agreement with an auto dealer regarding a new car. She has offered you a…

A: A loan is an agreement where an amount is forwarded in exchange for interest being paid as well…

Q: You purchase a new airplane for your company for 1,800,000 pesos by putting 10% down and using…

A:

Q: Find the present value of the following annuities. Assume the discounting occurs once a year A. The…

A: The present value is calculated by multiplying the annual cash flows with the present value annuity…

Q: A. If i buy a car from a dealership for $27000 with 2.5% paying monthly for a total of 3 years how…

A: Future value :— It is the value of present money in the future date.    Future value = Present Value…

Q: A historian for the American Math Museum has a 5-year car loan for which the monthly payment is…

A: Using excel PV function

Q: You want to buy a new car, but you can make an initial payment of only $1,300 and can afford monthly…

A: Monthly interest = APR /Number of months Monthly interest =  9%/12 Monthly interest = 0.75%

Q: You go to a phone dealer to buy a new car for 22,000 pesos financed at 3.4% APR, compounded monthly,…

A: An annuity loan occurs when an annuitant borrows money against the value of his or her annuity…

Q: The price of a new car is $24,000. Assume that an individual makes a down payment of 25% toward the…

A: Loan financing is a strategy provided by companies to the borrowers or customer to purchase the…

Q: Congratulations! You just bought a new car. You didn't have enough cash to pay for the whole thing…

A: Monthly payment (P) = $436.08 Interest rate = 5.6% Monthly interest rate (r) = (1+0.056)1/12-1…

Q: The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the…

A: Price of car=$20,000 Down payment=25%=$5,000 Amount financed=$15,000 Interest rate=4.2% p.a.…

Q: Suppose you purchase an automobile for a selling price of $1,600,000.  You make a down payment of 5%…

A: The total cost of an automobile includes the selling price of an automobile, sales tax, and license…

Q: Suppose that you decide to purchase a new car. You go to a credit union to get preapproval for your…

A: According to the time value of money concept, the value of the amount of money in the future is less…

Q: You intend to purchase a new car upon graduation in two years. It will have a cost of RM29,371,…

A: Amount in the account where funds are compounded monthly can be calculated as: = Amount Deposited*…

Q: A new engineer buys a car with 0% down financing from the dealer. The cost with all taxes,…

A: Information Provided: Total costs = $15,732 Number of payments = 48 Payment amount = $398

Q: Answer the following probiems: 1. The buyer of a car pays P 169,000 cash and P 12,000 every month…

A: Solution:- Cash price means the amount payable in today’s terms. So, cash price = Down payment +…

Q: If you are financing a new car with a loan that requires 15% interest compounded monthly over a 4…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: 1. In buying a car, Amiel pays P 210,000.00 cash and agrees to pay P790,000.00 for 4 years at 12%…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: A computer chip designer purchased a car for $54,676.47, which induded sales tax and registration. f…

A: Given that, Loan (PV)=$54,676.47 Duration (n)=5*12=60 periods Rate of interest (i)=4.5%/12=0.00375…

Q: A bank teller negotiated a purchase price of $22,350 for a car. In addition to the purchase price,…

A: We first need to figure out the total cost of the car and then the amount of loan. We will then use…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.