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tankabanditka [31]
4 years ago
12

2. The salesperson offers, "Buy this new car for $25,000 cash or, with appropriate down payment, pay $500 per month for 48 month

s at 8% interest." Assuming that the salesperson does not offer a free lunch, calculate the "appropriate" down payment. A. $8,000.00 B. $4,520.64 C. $5,127.24 D. $1,000.00
Business
1 answer:
Sidana [21]4 years ago
7 0

Answer:

B. $4,520.64

Explanation:

The computation of the down payment is shown below:

= {Monthly payment × (1 - 1 + interest rate)^-number of periods} ÷ {Interest Rate}

where,

Interest Rate = 8% ÷ 12 months = 0.66667

= {500 × (1 - 1 + 0.67)^-48} ÷ {0.67}

After solving this, the amount is $20,480.956

Now the down payment is

= $25,000 - $20,480.956

= $4,519.04 approx

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8 0
3 years ago
to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%.
PolarNik [594]

Answer:

11.33%

Explanation:

The dividend valuation model will be used here to calculate the cost of equity raised which can be calculated using the following formula:

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5 0
3 years ago
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Answer:

Making yourself look professional.

Explanation:

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7 0
4 years ago
Several years ago, Apple purchased, cool headphone maker Beats. Apple continues to sell Beats headphones that work with non-appl
aleksandrvk [35]

Answer:

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Explanation:

There is no available option. Please consider the given above.

If Apple has lower production cost then the acquisition is not justified.

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3 years ago
Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:
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<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.


</span>
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3 years ago
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