Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are going to buy a car from your uncle for whi

You are going to buy a car from your uncle for which he paid $70,000...

50.1K

Verified Solution

Question

Finance

You are going to buy a car from your uncle for which he paid $70,000 5 years ago. You will take delivery of the car two years from now. He needs a payment of $1,000 today plus $5,000 one year from now. Upon delivery two years from now, you pay him a final payment of $26,722.50. What is the value of your initial investment? Assume a discount rate of 5%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Fit For Human Consumption Objective Describe the applicability of the Uniform Commercial Code (UCC) to contracts for the...

Finance
Q

1. A block of mass m is sliding on a horizontal surface. The kinetic coefficient of...

Physics
Q

Article Why Are the Poor Poor? Explanations of poverty, like explanations of inequality in general, differ in...

Psychology
Q

Question 1 The banking system plays a crucial role in carrying out monetary policy. Through the...

Accounting
Q

Find the volume of the cone that has the same base and height as the...

Geometry
Q

Find the area under the standard normal curve. Round your answers to four decimal places....

Basic Math
Q

Sketch the region enclosed by y 3x and y 5x Find the area of the...

Calculus
Q

Find the matrix P that orthogonally diagonalizes the matrix A A B D P P...

Algebra
Q

You are a tax professional and have been asked to complete a tax return for...

Accounting
Q

Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions...

Accounting
Q

Question: You are required to create a scenario of a manufacturing company of your choice....

Accounting
Q

The Jewel Box purchases jewellery from around the world and sells to local retailers in...

Accounting