General Motors advertised three alternatives for a 25-month lease on a new Blazer: (1) Zero dollars down
Question:
(1) Zero dollars down and a lease payment of $1,750 per month for 25 months,
(2) $5,000 down and $1,500 per month for 25 months, or
(3) $38,500 down and no payments for 25 months.
Use the present value Table B.3 in Appendix B to determine which is the best alternative (assume you have enough cash to accept any alternative and the annual interest rate is 12% compoundedmonthly).
Transcribed Image Text:
Bonds: $100,000 Par Value, Semiannual Interest Payments, Two-Year Life, 6% semiannual Contract Rate, 5% Semiannual Market Rate Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Amortization Premium Unamortized Carrying Premium Value $103,546 102,723 101,859 100,952 100,000 (0) 12/31/2011 S3,546 2,723 1,859 952 0 (1) 6/30/2012 2) 12/31/2012 (3) 6/30/2013 (4) 12/31/2013 $6,000 -S5 ,177 5,136 5,093 5,048 $24,000 S20,454 6,000 6,000 6,000 s 823 864 907 952 $3,546
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
12 12 months 1 per month as the relevant interest rate Opti...View the full answer
Answered By
Akshay Singla
as a qualified engineering expert i am able to offer you my extensive knowledge with real solutions in regards to planning and practices in this field. i am able to assist you from the beginning of your projects, quizzes, exams, reports, etc. i provide detailed and accurate solutions.
i have solved many difficult problems and their results are extremely good and satisfactory.
i am an expert who can provide assistance in task of all topics from basic level to advance research level. i am working as a part time lecturer at university level in renowned institute. i usually design the coursework in my specified topics. i have an experience of more than 5 years in research.
i have been awarded with the state awards in doing research in the fields of science and technology.
recently i have built the prototype of a plane which is carefully made after analyzing all the laws and principles involved in flying and its function.
1. bachelor of technology in mechanical engineering from indian institute of technology (iit)
2. award of excellence in completing course in autocad, engineering drawing, report writing, etc
4.70+
48+ Reviews
56+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Accounting questions
-
Which is the best alternative in the following gains matrix? Would this decision change using a utility function U(x) =x? Event 0.3 P 0.3 P 0.4 0 Alternative 100 80 90 102 120 110
-
In order to determine which is a cheaper fuel, a student collects the following data for gasoline and diesel respectively. Price per gallon: $2.90 vs. $3.10; Heating value: 44 MJ/kg vs. 43.2 MJ/kg;...
-
Use the Present Value of $ 1 table (Appendix 12A, Table A) to determine the present value of $ 1 received one year from now. Assume a 10% interest rate. Use the same table to find the present value...
-
If we define the median of a sequence as a number so that exactly as many elements come before it in the sequence as come after it, fix the program in 4.6.3 so that it always prints out a median....
-
where 0 (a) Show that the marginal distributions tire given by fx(x) = af1(x) + (1 - a)f2(x) and fγ(x) = ag1(y) + (1 - a)g2(y). (b) Show that X and Y are independent if and only if |f1(x)...
-
A column on barrons.com as Lyft was preparing to launch its IPO contained the following advice: The Lyft IPO is sure to create excitement as other tech unicorns prepare to follow it to market....
-
How many monthly payments are required to repay a loan of \($12\),000 with an interest rate of 3/4 percent per month and end-of-month payments of \($400\)?
-
During the current year, Kim incurs the following expenses with respect to her beachfront condominium in Hawaii... Insurance ............... $500 Repairs and maintenance ......... $700 Interest on...
-
Coin Corporation is liquidating and will distribute $10,000 in money, other property having a $200,000 FMV, and a $60,000 mortgage on the property which Jim will assume. Jim's basis in his Coin stock...
-
Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium at 321 Hickory Drive in Ames, Iowa. Mitch lives with his...
-
Flyer (lessee) signs a five-year capital lease for office equipment with a $20,000 annual lease payment. The present value of the five annual lease payments is $82,000, based on a 7% interest rate....
-
Heineken N.V. reports the following information for its Loans and Borrowings as of December 31, 2008, including proceeds and repayments for the year ended December 31, 2008 (euros in millions). Loans...
-
The following table was obtained from the function f(x) = 2x: Find the interpolating polynomial for this table. Compare the values of the interpolating polynomial p(x) and the original function f(x)...
-
What does Harvard unofficial transcript look like from recent years such as 2020? Explain briefly.
-
The total price for movie tickets for four adults and two children is $25. Knowing that the ticket price for a child is half the price of an adult ticket, how much does a child's ticket cost?
-
Blockbuster Inc. just paid a dividend of $2 per share. Dividends are expected to grow at a rate of -50% annually over the next three years. After that, it is expected that Blockbuster will cease...
-
If the EUR/USD exchange rate is 1.1123, how many EUR can I buy with $1 million USD? 1. 1,112,300 EUR 2. 1,000,000 EUR 3. 899,038 EUR 4. 988,037 EUR
-
Assignment First, launch IntelliJ and close any previous projects that may be open (at the top menu go to File ==> Close All Projects). Create a new Java project and make sure "Create project from...
-
What does https stand for? a. Hypertext transfer protocol (secure). b. Hypertext transfer point (site). c. Hypertext transfer protocol (system). d. Hypertext transfer protocol (sign).
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
For a 15-m 20-m one-story house located in San Francisco, CA, determine the cost-effectiveness of retrofit of the windows with SISs. The house has a BLC of 500 W/C, wall height of 3.50 m, and WWR of...
-
Floras Gifts reported the following current- monthly data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 60 units 50 units from the January 6...
-
On January 1, JKR Shop had $ 225,000 of inventory at cost. In the first quarter of the year, it purchased $ 795,000 of merchandise, returned $ 11,550, and paid freight charges of $ 18,800 on...
-
A physical inventory of Liverpool Company taken at December 31 reveals the following. Required 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the...
-
A rock thrown with speed 1 2 . 0 m / s and launch angle 3 0 . 0 ( above the horizontal ) travels a horizontal distance of d = 1 7 . 5 m before hitting the ground. From what height was the rock...
-
describe what is a project charter and why is it important. Then, discuss how to initiate a new project with a new team, or using a new technology?
-
An electron is traveling with initial kinetic energy K in a uniform electric field. The electron comes to rest momentarily after traveling a distance d. (a) What is the magnitude of the electric...
Study smarter with the SolutionInn App