A credit card company offers a deferred payment option for the purchase of any appliance. Jack plans to buy a multi-door inverter refrigerator with monthly payments of P2,450 for 2 years. The payments will start at the end of 5 months. How much is the cash price of the multi-door inverter refrigerator if the interest rate is 6% compounded monthly? A. P63,865.84 B. P44,508.41 C. P53,917.54 D. P54,187.12

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: A washer dryer combination can be purchased from a department store by making monthly payments of…

A: Given: Monthly payment = $62.25 Interest rate = 24% Years = 3

Q: Assuming you have seen a car displayed in a mall with installment price of 500,000 with no interest.…

A: Installment system allows the buyer of an asset to pay for the asset in regular payments over a…

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Monthly Loan Payment = PV*(r*(1+r)n)((1+r)n-1)  where: PV is the present value of the loan r is the…

Q: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…

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Q: You borrow $21421 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Formula for calculating EMI: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] P = Loan amount  r=…

Q: You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

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Q: Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many…

A: Hello. Since your question has multiple sub-parts, we will solve first the three sub-parts for you.…

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

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A: We need to use loann amortization formula below to calculate monthly payments.  where P=Loann=number…

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

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Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…

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Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

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Q: Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The…

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A: a-1Present value = Cash flow/(1+interest)^number of years that is present value=

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A: Present value of any deposit is the discounted value of each intermediary and terminal value.

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…

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

A: Ordinary annuity are the payments which are made at the end of the period.

Q: Assuming you have seen a car displayed in a mall with installment price of P500,000 with no…

A: In the given question we need to compute the cash price of the car.

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

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Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…

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Q: Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season.…

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

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Q: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the…

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Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

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Q: You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then…

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Q: A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 %  down payment, you can have an amortized…

A: Down payment- While purchasing a asset, the payment which is made upfront is called down payment.…

Q: What effective annual rate (EAR) are they charging us on the loan?

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Q: you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per…

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