Practice Exam Problems 7 - Loans

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You can afford a $200 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford? S Submit Question Q Search hp O

how do you do this on a finacial calculator?

You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years.A. How expensive of a car can you afford? I can afford a car that costs $_________. B. How much total money will you pay the loan company? The total of all my payments will be $_______ . C. How much of that money is interest? The amount of that money that is interest will be $_______

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Example 5: While shopping for a car loan, you get the following offers: Solid Savings & Loan is willing to loan you $10,000 at 9% interest for 4 years. Fifth Federal Bank & Trust will loan you the $10,000 at 7% interest for 3 years. Both require monthly payments. You can afford to pay $250 per month. Which loan, if either, can you take?

How much will Mollys monthly payment be? Remember to divide the amount borrowing by the number of months

Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The maximum amount you are willing to pay is $450 per month. How much can you borrow if the loan lasts for 7 years, your first payment starts today, and the interest rate is 4.5% APR under monthly compounding? $32,495.13 O$29,489.45 O $31,576.98 O $27,456.87

You recently graduated from Miami University and are looking to purchase a new vehicle. The car costs $21,000. The bank quotes you an interest rate of 15 percent APR for a 72-month loan with a 10 percent down payment. What will your monthly payment be? $375.27 $2,835.12 $399.64 $3,150.13 $444.05

For the Questions 3-5 assume you want to finance (borrow) $12,000 for your next car and your interest rate will be 6%. 3. What will be your monthly payment and the total amount paid over the life of the loan if you finance for 48 months? Provide the car payment and the TVM inputs you used to calculate the payment. Рayment Total of all payments PV FV RATE/INTEREST PERIODS/N (See next page for Questions 4 and 5)

You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then you will finance the rest with a loan. Your bank will extend you a car loan where the APR is 4.32% and you will make monthly payments over five years. What is the monthly payment on the vehicle? O $593.33 O $660.78 O $512.79 O $825.98

you have just taken out a 5 year laon frm a bank to buy an engagement ring.  The ring costs $5000.  You plan to put down $1000 and borrow $4000.  you will need to make annual payments of $1000 at the end of each year.  show the timeline of the loan from your perspective.  How would the timeline differ if you created it from the bank's perspective?

Financial Accounting

Using the loan calculator and the 1.9% APR offer, how much will Mollys monthly payment be?

d You have decided to buy a car that costs $31,000. Since you do not have a big down payment, the lender offers you a loan with an APR of 6.27 percent compounded monthly for 7 years with the first monthly payment due today. What is the amount of your loan payment? Multiple Choice $294.91 $454.51 $456.89 $374.71 $293.38

Financial Accounting Question

You are looking to buy a car that costs $30,000.  Your payment is $400/month for 60 months.  If you want to know your interest rate on this loan, you can use Excel.  Excel returns a RATE of 0.70%.  What is your APR?     8.45%     2.75%     3.24%     0.70%

Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $989 per month, and the total finance charge is $9,504. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) Need Help? Read It Watch It Master It

You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal monthly payments beginning today then what will be your approximate monthly installment?   Group of answer choices   $170.43 $154.31 $160.31 $171.45

Give answer accounting question

You are interested in saving for a trip when you graduate in three years. You can save $75 each of the next 36 months and earn 2.75% interest on your money. How much money would you have in your savings account in 36 months for your trip? ( Please reference the loan infromation in the "Task 5 Data " cells as the argument for your functions

You borrow $10,000 to buy a car. You agree to pay $207.58. If your APR is 9%, how many years will it take for you to pay off the loan? Select one: a. 5 years b. 4.5 years C. 4 years d. 3.5 years e. 2.5 years Check

Someone needs to borrow ​$13,000 to buy a car and the person has determined that monthly payments of ​$250 are affordable. The bank offers a 4​-year loan at 8​% ​APR, a ​5-year loan at 8.5​%, or a 6​-year loan at ​9% APR. Which loan best meets the​ person's needs? Explain. Question content area bottom Part 1 Which loan best meets the​ person's needs? ​(Round to the nearest cent as​ needed.) A. The third loan best meets the​ person's needs because the monthly payment of ​$    enter your response here is less than the maximum budgeted amount of ​$ per month. B. The first loan best meets the​ person's needs because the monthly payment of ​$    enter your response

How much will Molly’s monthly payment be?