You've been shopping for a car. You have $1000 for a down payment, and will need to finance the remainder of the purchase. You find something suitable at a local car dealer, and you think the sticker price of $17,000 is reasonable. After considerable negotiations, the salesman says that, including your $1000 down, they can finance you at 6% for 4 years (48 months), and your monthly payments will be $399.25. Should you accept their offer? Show all calculations and explain.
Answer to relevant QuestionsWas Amazon's stock price reaction to their April 2012 earnings announcement efficient? Explain your reasoning. You've been shopping for a car. You have $3000 for a down payment, and will need to finance the remainder of the purchase. You find something suitable at a local car dealer, and you think the sticker price of $22,000 is ...You have just signed off on a legal judgment that will pay you $5000 immediately, with this amount growing every year in perpetuity by 3% per year. If your discount rate is 9%, what lump-sum payment today would be ...You have won a contest. Your prize consists of 5 payments of $10,000 made at the end of years 2, 4, 6, 8 and 10 (assume that "right now" equals time zero), or a one-time lump-sum cash payment made at time zero. You have a ...If you save $4800 a year into a 401(k) retirement plan (with deposits made in 12 equal monthly installments) for the next 15 years and earn an average rate of interest of 7% per year, how much will you have at the end of the ...
Post your question