General Motors advertised three alternatives for a 25-month lease on a new Blazer: (1) Zero dollars down
Question:
(1) Zero dollars down and a lease payment of $1,750 per month for 25 months,
(2) $5,000 down and $1,500 per month for 25 months, or
(3) $38,500 down and no payments for 25 months.
Use the present value Table B.3 in Appendix B to determine which is the best alternative (assume you have enough cash to accept any alternative and the annual interest rate is 12% compoundedmonthly).
Transcribed Image Text:
Bonds: $100,000 Par Value, Semiannual Interest Payments, Two-Year Life, 6% semiannual Contract Rate, 5% Semiannual Market Rate Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Amortization Premium Unamortized Carrying Premium Value $103,546 102,723 101,859 100,952 100,000 (0) 12/31/2011 S3,546 2,723 1,859 952 0 (1) 6/30/2012 2) 12/31/2012 (3) 6/30/2013 (4) 12/31/2013 $6,000 -S5 ,177 5,136 5,093 5,048 $24,000 S20,454 6,000 6,000 6,000 s 823 864 907 952 $3,546
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
12 12 months 1 per month as the relevant interest rate Opti...View the full answer
Answered By
Akshay Singla
as a qualified engineering expert i am able to offer you my extensive knowledge with real solutions in regards to planning and practices in this field. i am able to assist you from the beginning of your projects, quizzes, exams, reports, etc. i provide detailed and accurate solutions.
i have solved many difficult problems and their results are extremely good and satisfactory.
i am an expert who can provide assistance in task of all topics from basic level to advance research level. i am working as a part time lecturer at university level in renowned institute. i usually design the coursework in my specified topics. i have an experience of more than 5 years in research.
i have been awarded with the state awards in doing research in the fields of science and technology.
recently i have built the prototype of a plane which is carefully made after analyzing all the laws and principles involved in flying and its function.
1. bachelor of technology in mechanical engineering from indian institute of technology (iit)
2. award of excellence in completing course in autocad, engineering drawing, report writing, etc
4.70+
48+ Reviews
56+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Accounting questions
-
Which is the best alternative in the following gains matrix? Would this decision change using a utility function U(x) =x? Event 0.3 P 0.3 P 0.4 0 Alternative 100 80 90 102 120 110
-
In order to determine which is a cheaper fuel, a student collects the following data for gasoline and diesel respectively. Price per gallon: $2.90 vs. $3.10; Heating value: 44 MJ/kg vs. 43.2 MJ/kg;...
-
Use the Present Value of $ 1 table (Appendix 12A, Table A) to determine the present value of $ 1 received one year from now. Assume a 10% interest rate. Use the same table to find the present value...
-
If we define the median of a sequence as a number so that exactly as many elements come before it in the sequence as come after it, fix the program in 4.6.3 so that it always prints out a median....
-
where 0 (a) Show that the marginal distributions tire given by fx(x) = af1(x) + (1 - a)f2(x) and fγ(x) = ag1(y) + (1 - a)g2(y). (b) Show that X and Y are independent if and only if |f1(x)...
-
A bond has a face value of $1,000, which has two years remaining until maturity and pays a 7% annual coupon. It is currently priced at $1097. What is the bond's current yield?
-
Stock splits a. Decrease par value per share b. Increase the number of shares of stock issued c. Both a and b d. None of the above
-
The following table shows the nominal returns on the U.S. stocks and the rate of inflation. a. What was the standard deviation of the market returns? b. Calculate the average realreturn. Year 2004...
-
There are two competitors in the local banking zone. Bank ABC provides 11.2% compounded monthly on its time deposit. Bank XYZ provides 11.4% compounded semiannually on its time deposit. If you want...
-
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor...
-
Flyer (lessee) signs a five-year capital lease for office equipment with a $20,000 annual lease payment. The present value of the five annual lease payments is $82,000, based on a 7% interest rate....
-
Heineken N.V. reports the following information for its Loans and Borrowings as of December 31, 2008, including proceeds and repayments for the year ended December 31, 2008 (euros in millions). Loans...
-
Calculate tHo for the reaction NaCl (aq) + AgN03 (aq) AgCI(s) + NaN03 (aq) from the information in Table 2.7 in the Data section.
-
Explore the website of the UN Global Compact initiative, at https://www.unglobalcompact.org/. Click on the heading Engage Locally, and explore some of the companies in your part of the world that...
-
A horizontal metal strip \(1.0 \mathrm{~mm}\) thick and \(20 \mathrm{~mm}\) wide carries a 20-A current along its length, and both the length and the width are perpendicular to a uniform magnetic...
-
A particle that has mass \(m\) and charge \(q\) enters a uniform magnetic field that has magnitude \(B\) and is directed along the \(x\) axis. The initial velocity of the particle is in the \(x y\)...
-
An electron carrying a charge \(-e=-1.60 \times 10^{-19} \mathrm{C}\) moves in a straight line at a speed \(v=3.0 \times 10^{7} \mathrm{~m} / \mathrm{s}\). What are the magnitude and direction of the...
-
The isotopes magnesium-24 (mass \(3.983 \times 10^{-26} \mathrm{~kg}\) ) and magnesium-26 (mass \(4.315 \times 10^{-26} \mathrm{~kg}\) ) are to be separated using a mass spectrometer in which the...
-
Find other professional sports where viewers prefer the womens version of the sport over the mens version. Compare the salaries of the male and female athletes in those sports and discuss your...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
For a 15-m 20-m one-story house located in San Francisco, CA, determine the cost-effectiveness of retrofit of the windows with SISs. The house has a BLC of 500 W/C, wall height of 3.50 m, and WWR of...
-
Floras Gifts reported the following current- monthly data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 60 units 50 units from the January 6...
-
On January 1, JKR Shop had $ 225,000 of inventory at cost. In the first quarter of the year, it purchased $ 795,000 of merchandise, returned $ 11,550, and paid freight charges of $ 18,800 on...
-
A physical inventory of Liverpool Company taken at December 31 reveals the following. Required 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the...
-
There are two stocks in your portfolio, stocks A and B. You have invested $2,800 and $2,200 in A and B, respectively. And in the past three months, Stock A's average return was 6% while stock B's...
-
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of...
-
You own a portfolio of two stocks, A and B. Stock A is valued at $85,000 and has an expected return of 8.6 percent. Stock B has an expected return of 4.2percent. What is the expected return on the...
Study smarter with the SolutionInn App