7, 9 and 10

Calculating the Present Value of a Constumer Purchase. What would be the net present value of a microwave oven that costs S159 and will save you 568 a year in time and food away from home? Assume an average return on your savings of 4 percent for five years. 7. Comparing Automobile Loans. What would be the total vehicle cost in each of these situations? Vehicle I: A down payment of $3,500 with 48 monthly payments of $312. Vehicle 2: A down payment of $2,700 with 60 monthly payments of $276. 9. Buying versus Leasing a Motor Vehicle. Based on the following, calculate the costs of buying and of leasing a motor vehicle. Purchase Costa $1.500 $500 Down payment Loan payment Estimated value at end of loan Opportunity cost interest rated $450 for 36 months Leasing Costs Security deposit Lease payment End of lease charges $450 for 36 months $600 $4,000 active manager; his partner will run the restaurant. Will he get the loan? Explain your answer. 10. Analyzing a Spending Plan. Carl's house payment is $1,050 per month and his car payment is $385 per month. If Carl's take-home pay is $2,800 per month, what percentage does Carl spend on his home and car? 11. Analyzing a Spending Plan. In the above example, what percentage does Carl spend on his home