1. Find the monthly payments and the total interest for Loan A. 2. Find the monthly payments and the total interest for Loan B. 3. Compare the monthly payments and interest for the longer-term loan to the monthly payment and interest for the shorter-term loan.
Q: How do banks calculate the monthly payment on a loan?
A: Present value annuity formula is used to calculate the monthly payment on a loan. Here, The loan…
Q: 4. For the mortgage payment example in Chapter 17, use the Scenario Manager to create a report…
A: Monthly payment: A mortgage is a loan used to buy or maintain a home, land, or other sorts of real…
Q: Use the loan amortization table: Purchase price of a used car $5,533, Down payment $1,153, number…
A: Lookup table are used to calculate the loan amortization and are used as shortcuts to calculate the…
Q: Give an example of a loan repayment plan.Show at least 3 payment entries including the end of period…
A: The funds acquired by the borrower is repaid either in lumpsum amount at a future date i.e. at the…
Q: The Loan payoff schedule contains which of the following/s a. annual payment b. All of them
A: A loan payoff schedule is a payment schedule prepared for the loan payments. Whenever a loan is…
Q: Calculate the missing information for the installment loan that is being paid off early. Sum-of-the-…
A: Payments Remaining = Total payments - Payments Made Sum of digits is to be calculated by n(n+1) /2
Q: Calculate the missing information for the installment loan that is being paid off early. Sum-of-the-…
A: Number of payments = 18 Payments made = 3
Q: A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the…
A: The amount of the loan is the stated loan amount. The interest component can be calculated by…
Q: (a) What is the finance charge (in $) on the loan? 2$ (b) Use Table 13-1 to find what annual…
A: Finance charge refers to the payment made in addition to the borrowed amount. The finance charge…
Q: are the loan department supervisor ban Being paid task to calculate the rebate fraction, the finance…
A: Given information : Amount financed = $4,700 Number of payments = 36 Monthly payment = $165.33…
Q: Find the finance charge for a charge account with an average daily balance of $1213.58 and a monthly…
A: Finance Charge = Average Daily Balance x Monthly Interest rate
Q: find the monthly payment on the given loan. $
A: The total loan payment amount consists of interest and principal amount of loan. Loan= (Loan…
Q: Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for…
A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…
Q: Assignmeht Using this information, answer the following questions 1. What is the monthly payment? 2.…
A: Note : Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: Explain in general terms how the portion s of loan payment going to principal and interest change…
A: A loan payment consists of principle and interest, change over the life of the loan because with…
Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…
A: Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate is the amount that is given to the lender in lieu of the interest foregone by the lender on…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed (F) = $4700 Number of payments = 36 Payments made = 33 Remaining payments = 3…
Q: What would the loan payment amount and the interest payed for Kevan’s loan be if the PV=8500,…
A: The term loan payment amount refers to the total amount paid by an individual to pay off the loan…
Q: a) What is the rebate fraction of a 36 month loan paid off after the 15th payment?
A: Solution: (a). Loans paid off after 15 th payment. Number of payments remaining = 36 - 15 = 21 Total…
Q: Interview someone who borrowed from the bank, know how much is the rate pplied to the loan, term of…
A: A loan is made if, in return for the payment of both the principal and interest, you obtain cash or…
Q: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion…
A: Amortization: It represents the process of paying the loan by making periodic payments. These…
Q: Select the correct choice that completes the sentence below. The rebate amount is equal to the…
A: Rebate is a term used in short-selling, which is selling securities that a trader does not own. In…
Q: What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?
A: In fully amortized loan, total loan will be paid off by end of maturity i.e. loan term. Monthly…
Q: 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized…
A:
Q: a. How many payments are required to settle the loan? payments Round up to the next payment b. What…
A: Loan: It represents a sum of the amount borrowed by the borrower from the lender. The borrower pays…
Q: This is an amortized loan, because its payments contain: O Only the principal that must be repaid…
A: An amortized loan is that loan in which scheduled periodic payments are made. The payments are made…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate: It means returning or giving relaxation on loan payments if the loan is paid off earlier.
Q: a. How many payments are required to settle the loan? Round to the next payment b. Complete the…
A: Amortization Schedule: It represents a table comprising interest payments, principal payments, the…
Q: What is the total payback amount of the loan? What is the amount of each payment? /month What is the…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound…
A: COMPOUND INTEREST IS CALCULATED ON THE PRINCIPAL AMOUNT AND ALSO ON THE ACCUMULATED INTEREST OF…
Q: With loans, spreadsheets make it easy to _____. (can be more than 1 of the options listed below) a.…
A: Loan is a value which is borrowed from the other sources like banks and this amount is repaid later…
Q: Calculate the missing information for the installment loan that is being paid off early. Number of…
A: Rebate fraction is the ratio between sum of digits of payment remaining to number of payments. Sum…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: The rebate function is computed using the sum of digits formula, that is nn+12. The sum of digits of…
Q: Consider a compounding loan plan where the amounts owed at EOYS 3 and 4 are $5,800 and $6.264,…
A: First, we will calculate the compounding rate
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed = $1800 Number of payments = 18 Remaining payments = 18 - 14 = 4 Monthly payments =…
Q: 1. An installment loan is repaid a. in a single payment after a specified period of time. b. in…
A: The term loan refers to the sum of money where one party lends to the other party for a value that…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Your payback amount is the amount you will have to pay to meet the requirements of your mortgage…
Q: A. What is the monthly payment? Alejandra has a payment of $ a month. B. How much interest will be…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Amount financed = $4,700 Number of payments = 36 Monthly payment = $162.33 Payment made = 31
Q: (a)What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is the…
A: Formula used Rebate Fraction = Sum of remaining periods/Sum of total periods
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate fraction = No of payments remaining/Total no of payments Finance charge= Rebate fraction * […
Q: Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $13,400 9.4 5 3 4…
A: Principal = $13,400 Rate = 9.4% Time period = 5,3,4 Years
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Total payments = 18 Remaining payments = 6 Monthly payment = $128.89 Amount financed = $1800
Q: Using this information, answer the following questione 1. What is the monthly payment? 2. How much…
A: Note : Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: To compute for the annual interest payments of a loan, the principal amount is multiplied by: a.…
A: Nominal Rate of a loan is the rate by which interest is paid on the loan. Market Rate and Effective…
Q: What is the true rate of the cost of credit on a YEARLY basis? interest rate (your response)…
A: Cost of credit is the additional amount over the amount borrowed. It should be repaid by the…
Q: You are taking out a single-payment loan that uses the simple interest method to compute the finance…
A: Introduction: Usually financial charge is nothing but cost of borrowing amount which includes…
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- 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: 3-year loan at 5.9% Installment loan B: 5-year loan at 6.4% a.- find the monthly payments and the total interest for loan A b.-find the monthly payments and the total interest for loan B c.- compare the two loans. which is more economical?Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 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.) 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.) MacBook AirSuppose 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.)
- Suppose that you decide to borrow $35,000 for a new car. You can select one of the following loans, each requiring regular monthly payments: Installment Loan A: three-year loan at 6% Installment Loan B: five-year loan at 9%. Find the monthly payments and the total interest for Loan A. Find the monthly payments and the total interest for Loan B. Compare the monthly payments and total interest for the two loans. Use this formula to find the monthly payments:Suppose that you decide to borrow 16000 for a new car. You can select one of the following loans each requiring regular monthly payments. Installment loan A three-year loan at 6.3% Installment loan B five -year loan at 6.4% What would be the monthly payments for each loan and total interest for them also? How much will the buyer save in interest?Suppose that you decide to borrow 13000 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 5.8% What would be the monthly payments for each loan and total interest for them also?
- 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.I need help with answering question B: A car loan offered by Bank One requires quarterly payments and has an APR of 4.8 percent, whereas a the same loan amount may be obtained from Bank Two at an APR of 5 percent with monthly payments. Which loan would you choose and why?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 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: $A contour diagram of the monthly payment on a 5 year car loan as a function of the interest rate and and the amount you borrow is shown in the figure below. loan amount ($) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 60 80 Loan amount $ 140- 100 $ 120 員員员虽 1 3 5 7 9 11 13 15 (a) If the interest rate is 13% and you borrow $6000, what is your approximate monthly payment? (Estimate to within 5 dollars of the actual amount.) $ 140 (b) If interest rates drop to 11%, approximately how much more can you borrow without increasing your monthly payment? (Estimate to within 100 dollars of the actual amount.) $ 500 X interest rate (%) (c) Suppose your monthly payment is $120. Complete the table below showing how much you can borrow, without increasing your monthly payment, as a function of the interest rate. (Estimate to within 100 dollars of the actual amount.) Interest rate 1 % 3% $ 5 % $ 7%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.