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 reasonable. After considerable negotiations, the salesman says that, including your $3000 down, they can finance you at 5% for 5 years (60 months), and your monthly payments will be $358.55. Should you accept their offer? Show all calculations and explain.
Answer to relevant QuestionsDo you think analysts' efforts around the April 2012 Amazon announcement were consistent with the efficient markets hypothesis? Explain your reasoning. You've been shopping for a truck. You have $2000 to use as a down payment, and you've been working with your bank to get the best financing rate possible. The bank recently quoted you an APR of 4.5% for 48 months, but they ...Calculate the future value of $1000 invested for 3 years at an 8% annual rate of interest with monthly compounding. You have won a contest. Your prize consists of 8 payments of $5,000 made at the end of years 3-10 (assume that "right now" equals time zero), or a one-time lump-sum cash payment made at time zero. You have a 10% discount ...You have been having a fixed amount taken out of your paycheck at the end of every month for the past 10 years. These funds have been invested in a retirement account that has earned an average annual return of 6% over this ...
Post your question