1.A new graduate is evalu

1.A new graduate is evalu

1.A new graduate is evaluating buying a car after graduation. She has saved $2000 which she will use as a down payment. Calculate for an interest rate of 2% and 10%.: Cost $31,000.Fuel economy 30 MPG, Gas will cost $3.50/gallon rising 5% per year. He will drive 15,000 miles per year.Insurance will cost $950/year and go up $50/yearResale value at end of year 8 – $5,000.determine the present value of the cash flows assuming that the net payment after the down payment is a Year 0 cash flow and the other cash flows occur at the end of the year period. (Gas and Insurance are all paid at the end of the year)Show all work and explain thought process.

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