Question

if
DHL were to sell out of a use aircraft and have the following two
offers and consider which one would be better deal? how much better
is the better deal? assume 6% interest compounded annually and down
payment or not invested. round to the nearest cent. Offer 150,000
down payment and 30,000 a year for the next five years. offer to
75,000 down payment and 45,000 a year for the next five
years.

Answer #1

You have just taken out a $30,000 car loan with a 7% APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.) When you make your first payment,
$ nothing will go toward the principal of the loan...

A 25-year, $420,000 mortgage at 3.90% compounded semi-annually
is repaid with monthly payments.
a. What is the size of the monthly
payments?
Round to the nearest cent.
b. Find the balance of the mortgage at the end
of 5 years?
Round to the nearest cent.
c. By how much did the amortization period
shorten by if the monthly payments are increased by $125 at the end
of year five?
years
months
Express the answer in years and months, rounded to...

You have just taken out a $ 15,000 car loan with a 4 %APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest?
When you make your first payment,......will go toward the
principal of the loan and ..... will go toward the
interest. (Round to the nearest cent.)

The McBertys have $30,000 in savings to use as a down payment on
a new home. They also have determined that they can afford between
$1,700 and $1,800 per month for mortgage payments. If the mortgage
rates are 11% per year compounded monthly, what is the price range
for houses they should consider for a 30-year loan? (Enter
solutions from smallest to largest. Round your answers to the
nearest cent.)

Your broker offers to sell you some shares of Bahnsen & Co.
common stock that paid a dividend of $1.25 yesterday. Bahnsen's
dividend is expected to grow at 6% per year for the next 3 years.
If you buy the stock, you plan to hold it for 3 years and then sell
it. The appropriate discount rate is 11%.
A. Find the expected dividend for each of the next 3 years; that
is, calculate D1, D2, and D3. Note that...

A store offers two payment plans. Under the installment plan,
you pay 25% down and 25% of the purchase price in each of the next
3 years. If you pay the entire bill immediately, you can take a
discount of 5% from the purchase price. Assume the product sells
for $100.
1. Calculate the present value of the payments if you can borrow
or lend funds at an interest rate of 3 percent.
PV of installment plan:$ _________________
a. Which...

In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
The Oseola McCarty Scholarship Fund at the University of Southern
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You have written a novel and are negotiating compensation terms
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You have just taken out a $28,000 car loan with a 6 %APR,
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interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
When you make your first payment,$__ will go toward the
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Your broker offers to sell you some shares of Bahnsen & Co.
common stock that paid a dividend of $2.00 yesterday. Bahnsen's
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it. The appropriate discount rate is 10%. Find the expected
dividend for each of the next 3 years; that is, calculate D1, D2,
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