Question: You ve been shopping for a van You have 5000 to
You've been shopping for a van. You have $5000 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 3.99% for 72 months, but they will only agree to finance you if your car payment does not exceed $350 per month. You recently found a nice used van with low miles, and you've negotiated the seller down to $27,500. Using your down payment and line of credit from the bank, can you afford the truck? Show all calculations and explain.
Answer to relevant QuestionsWhat are the two major findings of the Barras, Scalliet and Wermers (2010) paper reviewed by Mark Hulbert? Identify at least 3 financial market anomalies that are inconsistent with the efficient markets hypothesis. What is the present value of a perpetuity of $2500 per year if the appropriate discount rate is 6%? A firm paid dividends in time periods −4 to 0 (4 years ago through today, spanning 4 periods) of $1.00, $1.08, $1.21, $1.34 and $1.45. What was the average annual compound rate of dividend growth over this period? A couple is planning for retirement. Currently they have $75,000 saved. They would like to work 20 more years, and have enough saved to meet the following goals: pay themselves a retirement salary of $50,000 a year for a 30 ...
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