7. A car dealership offers financing toward the purchase of a Toyota Prius. The dealership's offer results in a monthly payment of $21.60 per $1,000 borrowed for 48 months. Complete the table below for the corresponding monthly payment. Amount Borrowed $1,000 $2,000 $3,000 $5,000 $6,000 $9,000 $12,000 Monthly Payment $21.60 Refer to the information from problem 7 to answer the questions below. a) If your monthly payment is $356.40, how much did you borrow? b) How much is your monthly payment if you borrow $11,500? =) If you borrow $11,500, how much will you pay back, in total, for the loan?
7. A car dealership offers financing toward the purchase of a Toyota Prius. The dealership's offer results in a monthly payment of $21.60 per $1,000 borrowed for 48 months. Complete the table below for the corresponding monthly payment. Amount Borrowed $1,000 $2,000 $3,000 $5,000 $6,000 $9,000 $12,000 Monthly Payment $21.60 Refer to the information from problem 7 to answer the questions below. a) If your monthly payment is $356.40, how much did you borrow? b) How much is your monthly payment if you borrow $11,500? =) If you borrow $11,500, how much will you pay back, in total, for the loan?
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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Please help with 7
Transcribed Image Text:### Financing for Toyota Prius Purchase
A car dealership provides a financing plan for the purchase of a Toyota Prius. The offer includes a monthly payment of $21.60 for every $1,000 borrowed, spread over a period of 48 months. Below is the table that needs to be filled with the monthly payments for different borrowed amounts.
#### Table: Loan Amounts and Monthly Payments
| Amount Borrowed | Monthly Payment |
|-----------------|-----------------|
| $1,000 | $21.60 |
| $2,000 | |
| $3,000 | |
| $5,000 | |
| $6,000 | |
| $9,000 | |
| $12,000 | |
---
### Questions
1. **Calculate the Borrowed Amount:**
- If your monthly payment is $356.40, determine the total amount borrowed.
**Answer:** ____________________________
2. **Determine the Monthly Payment:**
- What will your monthly payment be if you borrow $11,500?
**Answer:** ____________________________
3. **Calculate the Total Repayment:**
- If you borrow $11,500, calculate the total amount you will repay over the term of the loan.
**Answer:** ____________________________
This exercise helps in understanding the calculation of loan payments and total repayment over time.
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