4) John borrowed $50,000 to purchase a new luxury car. The loan was for 4 years at a nominal rate of 3% per year compounded monthly. John has been making equal monthly payments on the loan. He just made his 18th payment.a) What is John's monthly payment?b) How much of the loan has been **repaid** immediately after the 18th payment?c) How much of the first payment was interest? How much of John's next (19th) payment is interest?d) If John decides to pay off the loan at the time of his next (19th) payment, how much would he have to pay?

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

4) of 3% per year compounded monthly. John has been making equal monthly payments on the loan. He jus made his 18th payment. John borrowed $50,000 to purchase a new luxury car. The loan was for 4 years at a nominal rat a) What is John's monthly payment? How much of the loan has been repaid immediately after the 18th payment? How much of the first payment was interest? How much of John's next (19th) payment is interestť If John decides to pay off the loan at the time of his next (19th) payment, how much would h b) c) d) have to pay?

4) of 3% per year compounded monthly. John has been making equal monthly payments on the loan. He jus made his 18th payment. John borrowed $50,000 to purchase a new luxury car. The loan was for 4 years at a nominal rat a) What is John's monthly payment? How much of the loan has been repaid immediately after the 18th payment? How much of the first payment was interest? How much of John's next (19th) payment is interestť If John decides to pay off the loan at the time of his next (19th) payment, how much would h b) c) d) have to pay?

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

See similar textbooks

Similar questions

Fritz Benjamin buys a car costing $7900. He agrees to make payments at the end of each monthly period for 5 years. He pays 9.6% interest, compounded monthly. (a) What is the amount of each payment? (b) Find the total amount of interest Fritz will pay. (a) Fritz's monthly payment is $ (Round to the nearest cent as needed.) (b) Fritz will pay a total of $ in interest. (Round to the nearest cent as needed.)
Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of theloan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annuallyhasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of thepayment was exactly $1,000.a. What is Marie’s monthly payment? b. How much did Boris originally borrow
William wants to borrow $42,000.00 today to purchase a car, which bank's lending option will allow him to achieve this? O a. Bank Macerato: A repayment of $425.00 at the beginning of each two weeks (biweekly) for 4 years at an interest rate of 2.35% compounded biweekly. O b. Bank Catanzaro: A repayment of $700.00 at the beginning of each month for 5 years at an interest rate of 2.50% compounded monthly. O c. Bank Prato: A repayment of $2,700.00 at the end of each quarter for 4 years at an interest rate of 2.45% compounded quarterly. O d. Bank Vasto: A repayment of $270.00 at the end of each week for 3 years at an interest rate of 2.20% compounded weekly.
How much would Doug save in interest if he amortized his mortgage over 15 years, rather than 25 years, and assuming he makes monthly payments. The total mortgage amount is $440,000 and the interest rate is 5.4% compounded semi-annually.
When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25 years. If he makes all 300 payments, repaying his loan on schedule, how much interest will he pay? (Assume all payments are of equal amount)
Mark just took out a loan from the bank for $3,700.00. He plans to repay this loan by making a special payment to the bank of $800.00 in 4 years and by also making equal, regular annual payments of X for 5 years. If the interest rate on the loan is 9.73 percent per year and he makes his first regular annual payment in 1 year, then what is X, Mark's regular annual payment? O $969.33 (plus or minus $1) O $824.76 (plus or minus $1) O $1,178.91 (plus or minus $1) $1,113.89 (plus or minus $1) O none of the answers are within $1 of the correct answer
Benito borrowed $800 two years ago. The interest rate on the loan was 5% compounded monthly for the first 8 months and 9% compounded quarterly for the rest of the time. How much does he owe now?
5) George wants to purchase a new house that costs $185, 500. The terms of the sale are 10% down payment and the rest to be paid off at a 5.75% interest rate compounded monthly for 30 years. paying $974.28 for his monthly payment b.) how much will george pay in interest for the life of the loan
13) Jane needs $30,000 to buy another new car in eight years. How much should she deposit at the end of each half year into an account that earns 4% interest compounded semiannually? A) $1263.36 B) $1663.37 C) $1609.50 D) $160.95 E) none of these
Brody borrowed from a bank at 5.06% compounded monthly; he settled the loan by repaying $4,460 at the end of every month for 2 years. a) What was the amount of loan received? $ b) What was the amount of interest charged?
Nikul
George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5 years ago. The amount of the loan was $200,000 for a term of 30 years, with interest at the rate of 8%/year compounded monthly. Currently, the interest rate for his ARM is 5.5%/year compounded monthly, and George's monthly payments are due to be reset. What will be the new monthly payment? (Round your answer to the nearest cent.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS