Module Mastery Exercise 3.3.1-Cameron Sloan

You will usually have choices of interest rates and loan term when seeking a loan. For the following, calculate the monthly payment and total interest over the loan term with each option.You need a $20,000 to buy a used car. Your bank offers a 3 year loan at 5%, a 4 year loan at 6%, and a 5 year loan at 7%.3 year loan at 5%: Monthly payment: $ Total: $ Total interest: $ 4 year loan at 6%: Monthly payment: $ Total: $ Total interest: $ 5 year loan at 7%: Monthly payment: $ Total: $ Total interest: $

Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.9% Installment Loan B: five-year loan at 4.8% P Use PMT = to complete parts (a) through (c) below. - nt 1- 1+ a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)

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 $_______

The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n )  7. If you want to buy a car that costs $16,000 with a loan at 3% APR how many years should you finance the car if you want your payment to be below $230? Do this problem any way you want, but clearly communicate your thinking.

You are interested in buying a brand new jalopy and expect the purchase price to be $19,000. The car dealership can offer financing at a 6% interest rate over 6 years. If you put 1,000 down towards the purchase and accept the financing terms, what will your monthly payment for the loan be? In Excel

When would leasing a vehicle be a better option than buying?   Describe in at least five sentences how you will prepare to purchase your next vehicle in order to (1) get the appropriate vehicle, (2) to get the best deal, and (3) to avoid getting ripped off.   For the Questions 3-5 assume you want to finance (borrow) $12,000 for your next car and your interest rate will be 6%.   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.   Payment   Total of all payments   PV   FV   RATE/INTEREST   PERIODS/N     (See next page for Questions 4 and 5)  What will be your monthly payment and the total amount paid over the life of the loan if you finance for 60 months? Provide the car payment and the TVM inputs you used to calculate the payment.   Payment   Total of all payments   PV   FV…

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

Help me with step by step answers on a TI 83, TVM solver and forumulas and timelines. You want to buy a car and need to see how big of a car loan you can afford. Your budget allows you allocate $289.99 per month for car loan payments. The bank will offer you a loan at 6% interest on an APR basis and monthly payments over five years. What is the amount of the loan you can afford? Use the $ symbol and round to the nearest dollar (no decimal places). Use commas in your answer if applicable.

Provide correct solution and accounting

You are looking to buy a car. You can afford $600 in monthly payments for five years. In addition to the loan, you can make a $700 down payment. If interest rates are 9.25 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

A car dealer offers to buy your car for $9,500 so that you can purchase a new one. If your monthly payment is $464.23 with an annual interest rate of 4.8% and you have 20 more payments remaining, is the present value of your car loan more or less than the amount the dealer is offering?     How much more or less (in dollars) is the present value of your car loan compared to the amount the dealer is offering? (Enter a number. Round your answer to the nearest cent.)

Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000 for a down payment and can get a five-year car loan at 7.71%. Use PMT= find the monthly payment and the total interest for the loan. CE to [-]

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 can afford a $350 per month car payment. You've found a 5 year loan at 6% interest. How big of a loan can you afford? Submit Question Search hp

You want to buy a new car. You can afford payments of $250 per month and can borrow the money at an interest rate of 3.8% compounded monthly for 3 years. How much are you able to borrow? Hint: click here If you take the loan, How much interest will you pay total?

Suppose you take out a five-year car loan for $12000, paying an annual interest rate of 3%. You make monthly payments of $216 for this loan. mocars Getting started (month 0): Here is how the process works. When you buy the car, right at month 0, you owe the full $12000. Applying the 3% interest to this (3% is "3 per $100" or "0.03 per $1"), you would owe 0.03*$12000 = $360 for the year. Since this is a monthly loan, we divide this by 12 to find the interest payment of $30 for the month. You pay $216 for the month, so $30 of your payment goes toward interest (and is never seen again...), and (216-30) = $186 pays down your loan. (Month 1): You just paid down $186 off your loan, so you now owe $11814 for the car. Using a similar process, you would owe 0.03* $11814 = $354.42 for the year, so (dividing by 12), you owe $29.54 in interest for the month. This means that of your $216 monthly payment, $29.54 goes toward interest and $186.46 pays down your loan. The values from above are included…

Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000 for a down payment and can get a three-year car loan at 5.94%. Use PMT= to find the monthly payment and the total interest for the loan. The monthly payment is $ (Round to the nearest cent as needed.) The total interest for the loan is S (Round to the nearest cent as needed.). SEED PA [¹-¹-] 4

Suppose you need to borrow $200,000 to buy a home, and you are deciding between a 15 year mortgage and a 30 year mortgage. Research a bank offering 15 year and 30 year mortgage loans and find the interest rates on those loans. Use the techniques you learned in this Module to do the following:    1.  Calculate the monthly payment for a 15-year mortgage and for a 30-year mortgage.   2.  Find the total amount of interest you will pay on the 15 year mortgage and on the 30         year mortgage.   3.  Describe some of the factors (financial and non-financial) that can influence whether         to obtain a shorter term mortgage or a longer term mortgage.    4.  Which mortgage would you take, the 15 year or the 30 year? Explain your decision.

Solve the following problems. Round your results to the nearest cent as needed. You need a loan to purchase a car. After the down payment, you need to borrow $24, 200. If a bank offers you a loan at 6.9% for 6 years, how much will your monthly payment be? How much will you pay in interest? Your monthly payment will be $ dollars You will pay a total of $ dollars TVM Calculator in interest

Use an excel chart to make your purchase decision.

Someone offers an investment opportunity that will pay you $725 at the end of each year for the next 17 years. How much would you be willing to purchase that investment for if you need a 10% annual return on you money? O $3,664.49 $5,815.63 $143.44 O $29.394.91

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

> Next question You can retry this question below If you want to buy a car, and you can afford a monthly payment of $425, how large of a loan can you get at 5.95% interest over 60 months(5 years)? Round your answer to the nearest dollar.

Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $7000 for a down payment and can get a four-year car loan at 7.12%. Use PMT= to find the monthly payment and the total interest for the loan. The monthly payment is $ (Round to the nearest cent as needed.) D PA

Suppose that you decide to borrow $14,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.5% Installment Loan B: five-year loan at 6.4% a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) c. Compare the monthly payments and the total interest for the two loans. Determine which loan is more economical. Choose the correct answer below. OA. The five-year loan at 6.4% is more economical. OB. The three-year loan at 5.5% is more economical.

We really want a new car and want to know if we can realistically afford it but also see how much interest we would end up paying in totality.If after talking to the sales person and spending a few hours at the dealearship, you were approved for a 42,000 loan with an annual percentage rate of 21.99% for a 7 year loan. What will your monthly payment be?Display in a plot the trajectory of payments over time, and trajectory of interest. Using this plot, when will most of your monthly payments go towards the principal balance and not the interest?

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

The formula below finds the monthly payment for a loan (car, mortgage, student):  P=I (r/1-(1+r)-n )  P = monthly payment I = initial loan amount borrowed r = monthly interest rate n = number of months to pay off the loan 5. Assume you decide to take a 5-year car loan, with a 3.25% APR paid monthly. Insert the numbers you have so far into the formula above and simplify as much as possible. Show any in-between steps you do. (Note: simplify means to calculate the parts of the equation that you can so far.) 6. Use your simplified formula from above to answer: What is the largest amount you can borrow for the car if you can afford a $350/month payment? Show work.

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 want to buy a new car, but you can make an initial payment of only $1,300 and can afford monthly payments of at most $825.   a. If the APR on auto loans is 9% and you finance the purchase over 36 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.)         b. How much can you afford if you finance the purchase over 48 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)