Question
Please answer by 10/21 9PM A) After graduation and just two months on your new job, notwithstanding advice to the contrary, you decide to purchase
Please answer by 10/21 9PM
A)
After graduation and just two months on your new job, notwithstanding advice to the contrary, you decide to purchase a new BMW. The price is $45,000 and the tradein value of the old reliable car is $9,000, that acts as a down payment. Financing is available at 6% APR (annual percentage rate) with a term of 5 years requiring monthly payments beginning the first month after the purchase. Calculate the amount of the monthly payment.
B)
Christopher Robin just turned 27 and is considering participating in the 401(k) plan of his company. If he contributed $4,000 at the end of this year and each year thereafter, then the company would match his contribution in the amount of $2,000 each year. If the funds would earn a rate of 6.25% annually and contributions were made for 30 years, then how much would be in the account at the end?
C)
The Really Useful Company needs new equipment. The vendor has offered to lease the equipment for five years with quarterly payments of $2,200 with the first payment due at the time of the signing of the lease, or sell the equipment for $35,000. The Company in its analysis assumes an interest rate of 6% and no value for the equipment at the end of five years. Which alternative is better?
D)
Peachtree Doors borrowed $50,000 to finance a machine. The repayment terms called for three equal annual payments beginning one year from the date of the loan. The interest rate was 6%. Prepare an amortization schedule showing: total payment, interest, and principal.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started