2. Alex needs to repay a $ 8500 debt. His bank offers personal loans with terms from one to live years at 8.9% per compounded monthly. a) Determine Alex's monthly payment for a five-year term. Use formula and show your work. ( b) Calculate the total interest paid on the loan if he makes monthly payment. c) Determine Alex's payment if he chooses to make bi-weekly and weekly payments. Use TVM Advanced Calculator and fill up the blank. Bi-weckly Weekly TVM Advanced Calculator TVM Advanced Calculator Mode End Beginning Mode End O Beginning Present Value PV Present Value PV Peyments PMT Payments PMT

2. Alex needs to repay a $ 8500 debt. His bank offers personal loans with terms from one to live years at 8.9% per compounded monthly. a) Determine Alex's monthly payment for a five-year term. Use formula and show your work. ( b) Calculate the total interest paid on the loan if he makes monthly payment. c) Determine Alex's payment if he chooses to make bi-weekly and weekly payments. Use TVM Advanced Calculator and fill up the blank. Bi-weckly Weekly TVM Advanced Calculator TVM Advanced Calculator Mode End Beginning Mode End O Beginning Present Value PV Present Value PV Peyments PMT Payments PMT

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Asher wants to buy a car that costs $29,660. He qualifies for a 4-year loan at a 2.8% annual interest rate, and he can afford a $500 monthly payment. What minimum down payment must Asher make to keep his monthly payment at or below $500? Round your answer to the nearest dollar. $6,980 $20,325 $22,680 $9,336
John wants to borrow 75,800 from a bank payable in 3 years and 9 months. if the bank charges 9.5% interest in advance what size of loan would he apply for?
Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the loan was September 7. Jennifer hoped to repay the loan on January 15. How much will Jennifer pay on January 15 if she pays off the loan on that date?
You loaned your brother a substantial amount of money and are working out a payment system. You’ve mutually agreed to a repayment schedule of $400 per month. You will charge 1 percent per month interest on the overdue amount. If the current balance is $20,000, how long will it take for the account to be paid off?
5:35 ll LTE D a webassign.net Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments (Necessary to amortize a loan of $1,000) Interest 10 15 20 25 30 35 40 Rate (%) Years Years Years Years Years Years Years Years 3.50 18.19 9.89 7.15 5.80 5.01 4.49 4.13 3.87 3.75 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03 4.00 18.42 10.12 7.40 6.06 5.28 4.77 4.43 4.18 4.25 18.53 10.24 7.52 6.19 5.42 4.92 4.58 4.34 4.50 18.64 10.36 7.65 6.33 5.56 5.07 4.73 4.50 4.75 18.76 10.48 7.78 6.46 5.70 5.22 4.89 4.66 5.00 18.87 10.61 7.91 6.60 5.85 5.37 5.05 4.82 5.25 18.99 10.73 8.04 6.74 5.99 5.52 5.21 4.99 5.50 19.10 10.85 8.17 6.88 6.14 5.68 5.37 5.16 5.75 19.22 10.98 8.30 7.02 6.29 5.84 5.54 5.33 6.00 19.33 11.10 8.44 7.16 6.44 6.00 5.70 5.50 6.25 19.45 11.23 8.57 7.31 6.60 6.16 5.87 5.68 6.50 19.57 11.35 8.71 7.46 6.75 6.32 6.04 5.85 6.75 19.68 11.48 8.85 7.6 6.91 6.49 6.21 6.03 7.00 19.80 11.61 8.99 7.75 7.07 6.65 6.39 6.21 7.25 19.92 11.74 9.13 7.90 7.23 6.82…
不 Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a finance company (at 2.78% add on interest for 5 years) or she can borrow from credit union (60 monthly payments of $03 78 each). Find the APR for each loan using a TVM solver, and decide which one is Claire's better choice The APR for the finance company loan is (Type an integer or decimal rounded to the nearest hundredth as needed)
William borrows $22,000 to buy a car. He will repay the loan through 4 years of equal monthly payments and an annualized interest rate of 4.3%. Think about payment #32 of the loan obligation. How much of this payment will be principal? Enter your answer as a positive number (in dollars), and round to the nearest dollar.
Julio buys a koi fishpond (and fish to put in it for his wife on their anniversary. He pays $8000 for the pond and fish with $2000 down. The dealer charges add-on interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information to answer the following questions: 1) Find the total amount of interest he will pay. 2) Find the monthly payment. 3) Find the APR value (to the nearest half percent). 4) Find (a) the unearned interest and (b) the payoff amount if he repays the loan in full with 12 months remaining. Use the most accurate method available.
LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5% with monthly payments of $673.65. How much will she spend on interest over the life of the loan? Round your answer to the nearest cent. Use the spreadsheet to solve.
To help pay for college, Sam borrowed money from an online lending company. He took out a personal, amortized loan for $53.500, at an interest rate of 5.9%, with monthly payments for a term of 15 years. For each part, do not round any intermediate computations and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find Sam's monthly payment. $0 (b) If Sam pays the monthly payment each month for the full term, find his total amount to repay the loan. $0 (c) If Sam pays the monthly payment each month for the full term, find the total amount of interest he will pay. $0 X
Jason has a credit card with an APR of 29.5% and a current balance of $13,150.35. He wants to pay it off in 3 years. What will Jason’s monthly payment be? (Remember a credit card is compounded monthly.) Round to the nearest dollar.

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