Question 4 8 pts To make some extra cash on the side, you consider buying a used car for $3,000 to use as a DoorDash delivery vehicle which will last for 3 years before it will be scrapped for no resale value. Your insurance tells you that you will pay $2,800 per year to insure the car and you estimate that you will earn $3,600 delivering in year 1, $3,750 in year 2, and $3,800 in year 3. Alternatively, you could invest your $3,000 in a market index returning 12% annually. Should you buy the car? What is the NPV of the opportunity? O No; NPV= -$6,208.53 O No; NPV=- $816.60 No; NPV=-$1,614.68 O Yes; NPV= $5,908.53 Yes; NPV = $2,183.40 Previous Next Sam took a 20-year mortgage for $600,000 on a 2,000 square foot home with a 4% APR (monthly compounding). If the first payment is due one month from now, how much of Sam's second payment goes toward paying off interest, and how much of his second payment goes toward paying off the principal of the loan? The second payment pays off $2000 in interest and $1635.88 in principal The second payment pays off $1994.547 in interest and $1641.33 in principal The second payment pays off $1987.88 in interest and $1648.00 in principal The second payment pays off $1639.0419 in interest and $1996.84 in principal The second payment pays off $1635.88 in interest and $2000 in principal Previous Next