Question: please answer both and show all work. Please do not use excel 4. A perpetuity makes end-of-year payments of $X starting at the end of

please answer both and show all work. Please do not use excel

4. A perpetuity makes end-of-year payments of $X starting at the end of year 2. Under interest rate 4% per annum, the present value of the perpetuity is $480.769. Calculate X. 5. John wants to buy a Tesla Model 3 with a price of $45000. John is going to pay $X in cash and finance the remaining purchase using a loan with end-of-month payment of $600 for 5 years, at a loan rate of 6% convertible monthly. Calculate X

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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!

Despite the economy, Liberty Bank has been investigating the possibility of initiating an internship program within our Financial Services Department. I have been appointed as the point person to...

Please answer all parts and show all work, do not use excel. Please show work in a way where I can easily follow your steps and duplicate with different numbers. The answer key is at the bottom, so...

A perpetuity makes end-of-year payments of $X starting at the end of year 2. Under interest rate 4% per annum, the present value of the perpetuity is $480.769. Calculate X.

Do not use excel thank you Smith makes quarterly deposits (at the end of every three months) to a saving account for 15 years. The four deposits in the first year are 2800 each. Deposits are...

A perpetuity with payments of 1 at the end of each year has a present value of 50. A 10-year annuity pays X at the beginning of each year. Assuming the same effective interest rate, the present...

An investment pays $20,000 at the end of year 2, $30,000 at the end of year 4 and $X at the end of year 8. At an annual effective rate of 8.5%, the modified duration of this cash flow is 5.51704....

please show all work and do not use excel or a financial calculator. The answer you get must be in the answer key posted at the bottom. 6. An investment pays $20,000 at the end of year 2, $30,000 at...

please show all work and do not use excel or a financial calculator. The answer you get must be in the answer key posted at the bottom, thanks! 5. At the end of years 2, 4, and 6, we have the...

Please show all work and do not use excel. Quick response = thumbs up. 4. Annuity A pays X at the end of each year for n years and has a present value of 493 . Annuity B pays 3X at the end of each...

Hoyt, Inc. has estimated current year sales (in millions) for the next four quarters. Q1 $240Q2 $250 Q3 $205 Q4 $350 ? Sales for the 1st quarter next year are projected to be $230.? Accounts...

The following are some of the costs incurred by a consulting firm. Salary paid to consultants Fee for attending training seminar Salary to office administrator Corporate office rent Cost of...

Find how many measurements lie (a) less than one sample standard deviation from the sample mean and (b) more than two sample standard deviations from the sample mean for the given measurement. Which...

Visual models assist Business Analysts in communicating business requirements effectively. True False

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...