21.   You can buy a car advertised for $12,000 on the following terms: (a) pay $12,000 and receive a $1,000 rebate from the manufacturer, or (b) pay $250 a month for 4 years, for total payments of $12,000, implying 0% financing. Which is a better deal if the interest rate is 1% per month?

Q: You want to buy a $191,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Cost of home = $191,000Down payment = 15%Loan terms = 30 yearsInterest rate = 7%

Q: A company has the following payment options to settle a loan: ■ Option A: To pay $19,000 today, or ■…

A: The question requires us to suggest a better payment option to settle the loan among the 2 given…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: You want to buy a $253,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Mortgage loans are secured loans that are paid by equal fixed monthly payments that carry the…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A:

Q: You want to buy a $189,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Home value = $189,000Down payment = 0.15 (15%)Monthly interest rate (r) = 0.003291666667 (0.0395 /…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Loan Amortization: It refers to the process of paying off the loan in equal periodic payments.…

Q: house is for sale for $250,000. You have a with monthly payments: (1) if you make a do loan with a…

A: By taking into account the impacts of compounding interest, the Effective Annual Rate (EAR) is a…

Q: You want to buy a car for $25000 that has to be paid in 5 years. If the car dealer agrees to finance…

A: Working note:

Q: 29. Annuities. You can buy a car that is advertised for $24,000 on the following terms: (a) pay…

A: The decision to pay now or consider annuity payments can be taken by comparing present value of both…

Q: 6. You purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down…

A: Monthly Mortgage Payments Monthly mortgage payment is the repayment of a mortgage loan by paying…

Q: Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The…

A: It is given that, the price of the car is $57,000 and the down payment is $10,000.So, the loan…

Q: For item (13) A car is to be purchased in monthly payments of P17,000 for 4 years starting at the…

A: Present value of any loan or borrowing is the sum of the down payment initially and the value of…

Q: You currently owe $118,580.44 on your mortgage loan, with an interest rate of 6.8%. Interest rates…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: You want to buy a new sports coupe for $30,000, and the finance office at the dealership has quoted…

A: in monthly payment, borrower pay the both interest and loan payment each month.  after end of the 60…

Q: You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted…

A: Compound = n = Monthly = 12Present Value = pv = $77,500Interest rate = r = 5.9 / 12Time = t = 48

Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Comp parts (a) through…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: A borrower is purchasing a property for $200,000 and can choose between two possible loan…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: 5) You are considering buying a Chevy Cruze. The sticker price is $15,000 and you have $2,000 to put…

A: Car price = $15,000Down payment = $2,000Interest rate = 10%Number of years = 5 years

Q: Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a)…

A: We need to use loan amortisation formula to calculate monthly payment of loan. The formula is PMT…

Q: The present value price of a car you would like to purchase today is $17,990. You are approved for a…

A: In this question one has to solve the monthly payment. Monthly payment can either be found out by…

Q: 13. If you botrow $1823 and pay back $2,728 in three years, what annual rate of interest are you…

A: Time Value of Money is a fundamental financial concept that recognizes the idea that the value of…

Q: consider purchasing a car that has a price of $18,700. You make payments for 6 years at an APR of…

A: A loan is a sum of money that is borrowed from a lender, with the agreement to repay the principal…

Q: You want to buy a $214,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: a) Mortgage amount = Cost of home - Down payment  Monthly payments are calculated using excel PMT…

Q: a. How much is the monthly loan repayment amount? b. If you double your loan repayment each month…

A: The amount borrowed from any financial institution or an individual is known as loan. Borrower needs…

Q: A. If i buy a car from a dealership for $27000 with 2.5% paying monthly for a total of 3 years how…

A: Future value :— It is the value of present money in the future date.    Future value = Present Value…

Q: Suppose you want to borrow $20,000 for a new car. You can borrow 8% per year, compounded 8 monthly…

A: A monthly payment on a loan is a fixed amount of money that a borrower is required to repay to the…

Q: A borrower is purchasing a property for $180,000 and can choose between two possible loan…

A: Loan alternatives refer to the options that are available for the borrower to avail debt. He/she can…