Question

42. Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 1,160.51 dollars for 11 years at a quarterly interest rate of 2.32 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 623.37 for 5 years and if her first payment to Fairfax Boats would be in 1 month, then what is the monthly interest rate that Mary Jo would be charged by Fairfax Boats? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

39. Celeste just borrowed 34,200 dollars. She plans to repay this loan by making equal quarterly payments of 1,897.65 dollars for 24 quarters. If she makes her first quarterly payment later today, then what is the quarterly interest rate on the loan? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Answer #1

42)

**Hence the monthly interest rate is 0.0047**

Mary Jo wants to buy a boat that is available at two
dealerships. The price of the boat is the same at both dealerships.
Middlefield Motors would let her make quarterly payments of
4,827.66 dollars for 8 years at a quarterly interest rate of 2.35
percent. Her first payment to Middlefield Motors would be due
immediately. If Fairfax Boats would let her make equal monthly
payments of 2,608 for 4 years and if her first payment to Fairfax
Boats would...

1) Celeste just borrowed 30,000 dollars. She plans to repay this
loan by making equal quarterly payments of 2,458.16 dollars for 15
quarters. If she makes her first quarterly payment later today,
then what is the quarterly interest rate on the loan? Answer as a
rate in decimal format so that 12.34% would be entered as .1234 and
0.98% would be entered as .0098.
2) A trampoline park is worth 255,011 dollars. It is expected to
produce equal monthly cash...

Bryna wants to buy a car that is available at two dealerships.
The price of the car is the same at both dealerships. Best Buggies
would let her make quarterly payments of $2,240 for 5 years at a
quarterly interest rate of 3.72 percent. Her first payment to Best
Buggies would be due in 3 months. If California Cars would let her
make equal monthly payments of $935 for 4 years and if her first
payment to California Cars would...

Celeste just borrowed 31,500 dollars. She plans to repay this
loan by making equal quarterly payments of 1718.3 dollars for 24
quarters. If she makes her first quarterly payment later today,
then what is the quarterly interest rate on the loan?
Answer as a rate in decimal format so that 12.34% would be
entered as .1234 and 0.98% would be entered as .0098.

39. Celeste just borrowed 34,200 dollars. She plans to repay
this loan by making equal quarterly payments of 1,897.65 dollars
for 24 quarters. If she makes her first quarterly payment later
today, then what is the quarterly interest rate on the loan? Answer
as a rate in decimal format so that 12.34% would be entered as
.1234 and 0.98% would be entered as .0098.

An investment, which is worth 44,500 dollars and has an expected
return of 13.27 percent, is expected to pay fixed annual cash flows
for a given amount of time. The first annual cash flow is expected
in 1 year from today and the last annual cash flow is expected in 5
years from today. What is the present value of the annual cash flow
that is expected in 3 years from today?
An investment, which is worth 88,925 dollars and...

Brenna wants to buy a car that is available at two dealerships.
The price of the car is the same at both dealerships. Best Buggies
would let her make quarterly payments of $2,250 for 5 years at a
quarterly interest rate of 3.82 percent. Her first payment to Best
Buggies would be due immediately. If California Cars would let her
make equal monthly payments of $920 at a monthly interest rate of
1.35 percent and if her first payment to...

Brenna wants to buy a car that is available at two dealerships.
The price of the car is the same at both dealerships. Best Buggies
would let her make quarterly payments of $2,250 for 5 years at a
quarterly interest rate of 3.82 percent. Her first payment to Best
Buggies would be due immediately. If California Cars would let her
make equal monthly payments of $920 at a monthly interest rate of
1.35 percent and if her first payment to...

9.
A. If the market premium is 9.65 percent, the risk-free rate is
3.88 percent, the inflation rate is 2.63 percent, and Middlefield
Motors common stock has a beta of 0.58, then what is the expected
return for Middlefield Motors stock? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.
B. If the expected return on the market is 14.36 percent,
inflation is 2.74 percent, the market...

Middlefield Motors is evaluating a project that would require an
initial investment of 79,077 dollars today. The project is expected
to produce annual cash flows of 7,471 dollars each year forever
with the first annual cash flow expected in 1 year. The NPV of the
project is 432 dollars. What is the IRR of the project? Answer as a
rate in decimal format so that 12.34% would be entered as .1234 and
0.98% would be entered as .0098.

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