PLEASE ANSWER MY QUESTIONS PROPERLY WITH SOLUTION-THANK YOU You have just leased a car that has monthly payments of $305 for the next 4 years with the first payment due today. If the APR is 5.4 percent compounded monthly, what is the value of the payments today? O $13,140.36 $13,552.85 $11.999.54 O $13,199.49 $12,858.49 Solution Answer to Question 1: Monthly Payment = $305 Period = 4 years or 48 months Annual Interest Rate = 5.4% Monthly Interest Rate = 0.45% Present Value of Payments = $305 + $305/1.0045 + $305/1.0045^2 + ... + $305/1.0045^47 Present Value of Payments = $305 * 1.0045 * (1 - (1/1.0045)^48) / 0.0045 Present Value of Payments = $305 * 43.2770 Present Value of Payments = $13,199.49 Answer to Question 2: Quarterly Payment = $1,300 Period = 21 years or 84 quarters Quarterly Interest Rate = 0.93% Present Value of Payments = $1,300/1.0093 + $1,300/1.0093^2 + $1,300/1.0093^3 + ... + $1,300/1.0093^84 Present Value of Payments = $1,300 * (1 - (1/1.0093)^84) / 0.0093 Present Value of Payments = $1,300 * 58.1170 Present Value of Payments = $75,552.06 Answer to Question 3: Decrease in Accounts Receivable = $26,650 - $24,440 Decrease in Accounts Receivable = $2,210 Increase in Accounts Payable = $40,560 - $39,170 Increase in Accounts Payable = $1,390 Increase in Inventory = $22,820 - $18,930 Increase in Inventory = $3,890 Use of Cash = Increase in Inventory - Decrease in Accounts Receivable - Increase in Accounts Payable Use of Cash = $3,890 - $2,210 - $1,390 Use of Cash = $290 Answer to Question 4: Cash Cycle = Operating Cycle - Accounts Payable Period Cash Cycle = 54.2 days - 37.1 days Cash Cycle = 17.1 days Operating Cycle = Inventory Period + Accounts Receivable Period Operating Cycle = 22.5 days + 31.7 days Operating Cycle = 54.2 days.

1. Question 10 (1.2 points) d What helps explain the popularity of mutual funds? l. Mutual funds
require a smaller initial investment than stocks or bonds. Il. Mutual funds are a primary
investment choice in retirement plans IlI. Mutual funds frequently outperform market indexes. 1)
Il only. 2) I and II only. 3) Il and Ill only. 4) I, II, and III.
Solution
I is incorrect because small amounts can be used to purchase stocks and bonds as well
II and III only are correct