Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A ice cream parlor is worth 146,588 dollars. It is expected to produce equal monthly cash flows of 12,741 dollars for 10 months with the

image text in transcribed

A ice cream parlor is worth 146,588 dollars. It is expected to produce equal monthly cash flows of 12,741 dollars for 10 months with the first monthly cash flow expected in 1 month. The ice cream parlor is also expected to make an extra cash flow of 35,461 dollars in 10 months. What is the monthly cost of capital for the ice cream parlor? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number Bryna wants to buy a car that is available at two dealerships. The price of the car is the same at both dealerships. Best Buggies would let her make quarterly payments of $2,240 for 5 years at a quarterly interest rate of 3.72 percent. Her first payment to Best Buggies would be due in 3 months. If California Cars would let her make equal monthly payments of $935 for 4 years and if her first payment to California Cars would be today, then what is the monthly interest rate that Bryna would be charged by California Cars? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098 Number Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 3,497.68 dollars for 12 years at a quarterly interest rate of 2.91 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 2,778.25 for 3 years and if her first payment to Fairfax Boats would be in 1 month, then what is the monthly interest rate that Mary Jo would be charged by Fairfax Boats? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Monetary Policy And Public Finance

Authors: G. C. Hockley

1st Edition

1138704792, 978-1138704794

More Books

Students also viewed these Finance questions

Question

Define language, and recognize its properties.

Answered: 1 week ago