Question
You want to purchase a car worth $35k. You decided to put down a downpayment of $5k. Your loan amount is $30k with an interest
You want to purchase a car worth $35k. You decided to put down a downpayment of $5k. Your loan amount is $30k with an interest rate of 4.5% with a 5 yr life of the loan. After 2 yrs, you decided to refinance. The amount for refinancing is $18,785.73 with a new interest rate of 4% for a 4 year life of the loan.
Based on NPV, is it worth refinancing?
Step by Step Solution
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SOLUTION To determine if refinancing is worth it based on NPV Net Present Value we need to calculate ...
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South-Western Federal Taxation 2020 Comprehensive
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
43rd Edition
357109147, 978-0357109144
