Question: You are purchasing a used car and will make 5 annual payments of $3,500 starting one year from today. If your funds could be invested

You are purchasing a used car and will make 5 annual payments of $3,500 starting one year from today. If your funds could be invested at 9%, what is the present value of the car? (Round the final answer to the nearest dollar.)

$14,839

$20,946

$13,614

$17,500

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!

Separate and assign the following activities to employee A, B and C to accomplish the best control. Explain why. a. Assemble supporting documents for cash disbursements b. Maintain custody of the...

7. The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 6% per quarter. a. What is the present value of all dividends? b. If you expect to...

I am working on a excel two input data table and having issues getting it work properly. It's Question 2D on the uploaded documents. One is the word version with question, 2nd is the excel version. I...

Suppose you iwvest $2,500 today and eco $10250 in ve years a. What is the internal rate of retom (RR) of this b. Suppose another investment opportunity aloques $2.500 per but paysa receive each year?...

Solving for Variables Other Than Present Value or Future Value 29. You have decided to buy a perpetuity. The bond makes one payment at the end of every year forever and has an interest rate of 5%. If...

A long-lost relative recently created a trust fund for you in her will. Per the terms of the trust fund, you will receive $98,000 per year forever. You, however, must wait 5 years for your first...

A series of equal periodic payments in which the first payment is made one compounding period after the date of the contract is ________. A. a deferred annuity B. a compound annuity C. an annuity due...

QUESTION 1 A rise in the domestic interest rate will a. raise the value of foreigncurrency put options and reduce the value of foreigncurrency call options b. reduce the value of both foreigncurrency...

Ruggiero Limousine Service is considering purchasing a new limo for $80,000. The limo will generate cash flow evenly over its 6-year life and have no salvage value. How much annual cash flow must the...

Worksheet Chapter 53-5.4 Name: Problem 1: (a) I invest $250 at the end of each month for 2 years at a nominal interest rate of 9% compounded monthly. How much is the investment worth at the end? (b)...

What bodies are responsible for establishing accounting standards for the federal government and its agencies?

Let S = $100, K = $95, r = 8% (continuously compounded), = 30%, = 0, T = 1 year, and n = 3. a. Verify that the binomial option price for an American call option is $18.283. Verify that there is...

El Banco de la Sierra S.A.B. est calculando su fondo HQLA (Activo Lquido de Alta Calidad) y cuenta con los siguientes saldos: Cartera de crdito etapa 1 $88,567,450 Instrumentos financieros derivados...

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Bob and Tim have opposite ideas about how to achieve company goals. (Who, Whom) do you think will win the debate?

Each manager plans to expand (his, their, his or her) sphere of control next year.

Either of the new products would readily find (their, its) niche in the marketplace.