Question

Compare the purchase of a boat, using annual vs monthly payments. The boat costs $50,000. The interest rate is 12%. The loan is for 5 years. You sell it in either case for $20,000. Define the life cycle cost of the boat purchase and the annual outlay for payments under each scenario. PLEASE INCLUDE A CASH FLOW DIAGRAM or I will not rate. Thank you!

Answer #1

Compare the purchase of a boat, using annual vs monthly
payments. The boat costs $50,000. The interest rate is 12%. The
loan is for 5 years. You sell it in either case for $20,000. Define
the life cycle cost of the boat purchase and the annual outlay for
payments under each scenario. PLEASE INCLUDE A CASH FLOW DIAGRAM or
I will not rate. Thank you!

Use your financial calculator to compute the monthly payments
for a vehicle that costs $13,100 if you financed the entire
purchase over four years at an annual interest rate of 6.5 percent.
Also calculate the loan payments assuming rates of 5.5 percent and
7.5 percent. Compare the total amount spent on the vehicle under
each assumption.
The monthly payments for a vehicle that costs $13,100 if you
financed the entire purchase over four years at an annual interest
rate of...

Use your financial calculator to compute the monthly payments
for a vehicle that costs $15,000 if you finance the entire purchase
over 4 years at an annual interest rate of 6 percent. Also,
calculate the loan payments assuming rates of 5 percent and 7
percent. Compare the total amount spent on the vehicle under each
assumption.

Use your financial calculator to compute the monthly payments
for a vehicle that costs $13 comma 900 if you financed the entire
purchase over four years at an annual interest rate of 6.25
percent. Also calculate the loan payments assuming rates of 5.25
percent and 7.25 percent. Compare the total amount spent on the
vehicle under each assumption.
The monthly payments for a vehicle that costs $13 comma 900 if
you financed the entire purchase over four years at an...

What is the life cycle cost of a vehicle under the following
scenario: Initial cost is $50,000. Maintenance cost is $2500/yr.
The maintenance increases $500/yr starting in year 5. The car is
sold in year 10 for $10,000. The interest rate is 4%/yr. PLEASE
INCLUDE A CASH FLOW DIAGRAM or I will not rate. Thank you!

Compare the monthly payments and total loan costs for the
following pairs of loan options. Assume that both loans are fixed
rate and have the same closing costs.
You need a $60,000 loan.
Option 1 a 30 year loan at an APR of 6.65%
Option 2 a 15- year loan at an APR of 6.25%
1.) Find the monthly payment for each option
2.) Find the total amount paid for each option
3.) Compare the two options to determine which...

Compare the monthly payments and total loan costs for
the following pairs of loan options. Assume that both loans are
fixed rate and have the same closing costs. You need a $80,000
loan. Option 1: a 30-year loan at an APR of7.15%. Option 2: a
15-year loan at an APR of 6.75%. Find the monthly payment for each
option.
The monthly payment for option 1 is $----
The monthly payment for option 2 is $----
(Do not round until the...

You have a 10 year loan for $50,000 and you make annual payments.
The interest rate is 6% annual compounded quarterly.
a) What are your annual payments?
b) If the inflation rate is 3.2% annual
compounded monthly, what is the purchasing power of your final
payment in year 2 dollars?
c) What are the equal annual payments in
year 2 constant dollars with the above inflation rate?
d) What is the total interest paid in year...

Furniture to Go is offering new customers an opportunity to
defer their furniture purchase payments for 3 months before their
first payment is due. You purchased furniture costing $8,000 and
want to take advantage of the 3 months’ deferral before making your
first payment. You agree to pay the loan in monthly payments over a
3-year period after the deferral period. If the interest rate is
12% per year and interest accrue monthly during the 3 months’
deferral period.
Draw...

Using Microsoft Excel:
1. A machine will cost $50,000 to purchase. Annual operating
cost will be $3,000. This machine will save $15,000 per year in
labor costs. The salvage value after 5 years will be $10,000.
Calculate the machine’s equivalent uniform annual worth (EUAW) for
the interest rate of 8%.
2. The maintenance cost for a generator have been recorded over
its five year life. Calculate EUAC at 8 percent per year.
Year
1
2
3
4
5
Cost
$1100...

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