Question

Derek decides to buy a new car. The dealership offers him a choice of paying $519.00 per month for 5 years (with the first payment due next month) or paying some $28,934.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?

**Answer format:** Percentage Round to: 3
decimal places (Example: 9.243%, % sign required. Will accept
decimal format rounded to 5 decimal places (ex: 0.09243))

Derek wants to withdraw $14,002.00 from his account 4.00 years from today and $13,467.00 from his account 10.00 years from today. He currently has $3,421.00 in the account. How much must he deposit each year for the next 10.0 years? Assume a 5.10% interest rate. His account must equal zero by year 10.0 but may be negative prior to that.

**Answer format:** Currency: Round to: 2
decimal places.

Derek currently has $13,029.00 in an account that pays 4.00%. He will withdraw $5,072.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $13029.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 24.00 years from today?

**Answer format:** Currency: Round to: 2
decimal places.

Answer #1

1)

**Hence, indifferent rate is 2.929%**
(0.24412%*12)

Derek decides to buy a new car. The dealership offers him a
choice of paying $587.00 per month for 5 years (with the first
payment due next month) or paying some amount today. He can borrow
money from his bank to buy the car. The bank requires a 5.00%
interest rate. What is the most that he would be willing to pay
today rather than making the payments?
Answer Format: Currency: Round to: 2 decimal places.

Derek decides to buy a new car. The dealership offers him a
choice of paying $532.00 per month for 5 years (with the first
payment due next month) or paying some $28,528.00 today. He can
borrow money from his bank to buy the car. What interest rate makes
him indifferent between the two options? ( round to 3 decimal
places as a percentage). (i.e 1.234%).

Derek decides to buy a new car. The dealership offers him a
choice of paying $555.00 per month for 5 years (with the first
payment due next month) or paying some amount today. He can borrow
money from his bank to buy the car. The bank requires a 6.00%
interest rate. What is the most that he would be willing to pay
today rather than making the payments?
Derek plans to buy a $27,733.00 car. The dealership offers zero
percent...

Derek decides to buy a new car. The dealership offers him a
choice of paying $585.00 per month for 5 years (with the first
payment due next month) or paying some amount today. He can borrow
money from his bank to buy the car. The bank requires a 5.00%
interest rate. What is the most that he would be willing to pay
today rather than making the payments? SHOW FINANCIAL CALCULATIONS
AND EQUATIONS, ROUND 2 DECIMALS

Derek decides to buy a new car. The dealership offers him a
choice of paying $583.00 per month for 5 years (with the first
payment due next month) or paying some amount today. He can borrow
money from his bank to buy the car. The bank requires a 5.00%
interest rate. What is the most that he would be willing to pay
today rather than making the payments?

Derek plans to buy a $33,277.00 car. The dealership offers
zero percent financing for 56.00 months with the first payment due
at signing (today). Derek would be willing to pay for the car in
full today if the dealership offers him $____ cash back. He can
borrow money from his bank at an interest rate of 5.80%.
Submit
Answer format: Currency: Round to: 2 decimal places.

Derek plans to buy a $25,614.00 car. The dealership offers zero
percent financing for 53.00 months with the first payment due at
signing (today). Derek would be willing to pay for the car in full
today if the dealership offers him $____ cash back. He can borrow
money from his bank at an interest rate of 5.26%.
Answer Format: Currency: Round to: 2 decimal
places.

Derek currently has $11,714.00 in an account that pays 5.00%. He
will withdraw $5,458.00 every other year beginning next year until
he has taken 4.00 withdrawals. He will deposit $11714.0 every other
year beginning two years from today until he has made 4.0 deposits.
How much will be in the account 22.00 years from today?
Answer format: Currency: Round to: 2
decimal places.
Derek can deposit $294.00 per month for the next 10 years into
an account at Bank A....

1. Derek currently has $11,028.00 in an account that pays 6.00%.
He will withdraw $5,835.00 every other year beginning next year
until he has taken 7.00 withdrawals. He will deposit $11028.0 every
other year beginning two years from today until he has made 7.0
deposits. How much will be in the account 26.00 years from
today?
Answer format: Currency: Round to: 2
decimal places.
2. Derek can deposit $293.00 per month for the next 10 years
into an account at...

Derek currently has $11,305.00 in an account that pays 4.00%. He
will withdraw $5,156.00 every other year beginning next year until
he has taken 6.00 withdrawals. He will deposit $11305.0 every other
year beginning two years from today until he has made 6.0 deposits.
How much will be in the account 30.00 years from today? round
answer 2 decimal places

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