Question: What price will a finance company pay to a merchant for a conditional sale contract that requires 18 monthly payments of $331 beginning in

What price will a finance company pay to a merchant for a

What price will a finance company pay to a merchant for a conditional sale contract that requires 18 monthly payments of $331 beginning in five months? The finance company requires a rate of return of 15% compounded monthly. (Do not round intermediate calculations and round your final answer to 2 decimal places.) The finance company will pay %24

Step by Step Solution

★★★★★

3.42 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To find out the present value that a finance company will pay for the contract we need to calculate ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The first of ten semiannual payments of $2200 will be made 5, years from today. What is the present value of this deferred annuity using a discount rate of 7.2% compounded semiannually? (Do not round...

A deferred annuity consists of an ordinary annuity paying $2500 semiannually for a 12-year term after a 6- year period of deferral. Calculate the deferred annuity's present value using a discount...

Marion's grandfather's will established a trust that will pay her $2900 every three months for 11 years. The first payment will be made six years from now, when she turns 19. If money is worth 7.9%...

What price will a finance company pay to a merchant for a conditional sale contract that requires 12 monthly payments of $301 beginning in five months? The finance company requires a rate of return...

Summary of Key Formulas A copy of this summary of Key Formulas will be attached to exams. On assignments and exams show all your work. This allows the marker to assess partial marks. Show the...

What price will a finance company pay to a merchant for a conditional sale contract that requires 15 monthly payments of $231 beginning in six months? The finance company requires a rate of return of...

6 1 What price will a finance company pay for a conditional sale contract requiring 18 monthly payments of $200 50, if the company requires a rate of return of 16% compounded semiannually? The first...

here is the clear one TEST #3 inni 1 What price will a finance company pay for a conditional sale contract requiring 12 monthly payments of $245.50, if the company requires a rate of return of 21%...

What price will a finance company pay for a conditional sale contract requiring 12 monthly payments of $195.50, if the company requires a rate of return of 15% compounded semiannually? The first...

What price will a finance company pay for a conditional sale contract requiring 12 monthly payments of $245.50, if the company requires a rate of return of 21% compounded semiannually? The first...

A researcher wants to determine the impact of soil type on the growth of a certain type of plant. She grows three plants in each of four different types of soil and measures the growth in inches for...

Mr. Jones is contemplating retirement. He has just celebrated his 55th birthday and his net worth is $2 million. He hopes that after retirement he can maintain a lifestyle that costs him $100,000 per...

5. A manager of a Merchandising firm wishes to test whether its three salesmen X, Y and Z tend to make sales of the same size or whether they differ in their selling abilities. During a week there...

What is one way a professional running a lineup can make the procedure suggestible to an eyewitness? A) encouraging the witness when they identify the suspect B) remaining silent when witnesses make...

Suppose that 3000 drivers in Wakanda were randomly breath-tested on 21 April 2019 and 116 were above the limit of 0.05 blood-alcohol level. On 15 May 2019, 4000 drivers were tested and 98 were above...

Which of the following is an appropriate guideline for waste disposal? O a. Clean trash cans regularly to remove drips and crumbs that provide food for pests Ob. Do not use plastic liners in trash...

At the beginning of the year, Marshall Square, Inc. issued TA 2, 3 $100 million (maturity value) of 20-year debentures. The debentures carry a 4.75 percent annual coupon rate (compounded...

Identify the source of funds within Micro Credit? How does this differ from traditional sources of financing? What internal and external governance mechanisms are in place in Micro Credit?

What are the key differences between T-notes and T-bonds?

You are managing a pension fund with a value of $200 million and a beta of 1.07. You are concerned about a market decline and wish to hedge the portfolio. You have decided to use SPX calls. How many...

Based on the spot interest rates in the previous question, what are the following forward rates, where fk,1 refers to a forward rate beginning in k years and extending for 1 year? f2,1 = ; f3,1 =

What is the time remaining until the maturity date of a $50,000 strip bond if it has just been purchased for $20,822.89 to yield 5.38% com- pounded semiannually until maturity?

To the nearest day, how long will it take a $20,000 investment to grow to $22,000 (including accrued interest) if it earns 7% compounded quarterly? Assume that a quarter year has 91 days.

The terms of payment on an invoice are 3/10, n/90. What are the simple and effective annualized rates of return earned by taking the cash discount on the last day of the discount period instead of...