Larry wants to buy a new Toyota Avalon. The sticker price on the model he is interested in is $41,271. Larry has done his homework and knows that the dealer cost on this car is 15% lower than the sticker price and the best deal he can negotiate is 3-4% above the dealer cost. Approximately what price should Larry be at when he finishes his negotiation? $35,420 $37,800 $38,000 $36,500
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- You are selling your vintage car and have received two offers. The first offer is for $200,000 in cash today. The second offer is the payment of $80,000 today and an additional $220,000 three years later. The applicable discount rate is 8%. You should accept the more today. offer as it is worth Multiple Choice second; $100,000 second; $46,357 first; $46,357 second: $54,643 O first; $52,685Walter is a used car dealer. He has the chance to buy a used car that he thinks he can resell for $6,400. If Walter needs a 30% markup on selling price, what price can he pay? View keyboard shortcutsBuying the car. They have narrowed their choice to one car that has a negotiated dealership cost of $20,700. Option #1: Buy the car. George and Mary may buy the car with an 8% downpayment and an APR of 2.5% for 48 months. Option #2: Lease the car. They may lease the car for $247 per month, with $1,999 due at signing. They are allowed 10,000 miles per year in mileage. If they drive more than 10,000 miles per year, they must pay the dealership $0.15 per mile for the total amount the mileage has exceeded the limits at the end of the 48 months. Cost of operating the car. In addition to their monthly car payments, G&M will need to buy gas, change the oil, and pay for insurance. They assume gas will average $2.40/gallon over the next 4 years. They drive 15,000 miles each year, and the car averages 30 miles per gallon of gas. Oil changes are $60 every 5000 miles. Insurance and licensing fees are based on the car price, and they figure that 5% of the full price of the car each year…
- Let's try some questions: Fred buys a new truck by paying $15,000 cash and trading in his old truck ($10,000 market value). What is the cash equivalent price of the truck?Derek decides to buy a new car. The dealership offers him a choice of paying $588.00 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 4.00% interest rate. What is the most that he would be willing to pay today rather than making the payments? # 4 unanswered not submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places.The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $987,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for two years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $ (b) If Darrell chooses the 4-point 9% loan,…
- The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property.Darrell Frye is planning to buy an office building at a cost of $987,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for three years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.)(a)What is the amount being financed?$ (b)If Darrell chooses the 4-point 9% loan, what will be…The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $987,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for three years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $ (b) If Darrell chooses the 4-point 9% loan,…The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $989,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? 890100 $ (b) If Darrell chooses the 4-point 9%…
- The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $989,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for two years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $ (b) If Darrell chooses the 4-point 9% loan,…The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $989,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $ (b) If Darrell chooses the 4-point 9% loan,…The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $982,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $______ (b) If Darrell chooses the 4-point 9%…
