A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is financed at an interest rate of 0.75 a. Calculate the required monthly loan payment on the car. b. How much does your friend still owe on the car loan immediately after she makes the 24th monthly payment? c. If, after the 24th payment, she decides to pay $100 more each month, how many months will it take her to payoff the remaining loan a. The required monthly payment is (Round to the nearest cent.) b. Your friend still owes $ on the car loan. (Round to the nearest dollar) c. It will take her months (Round-up to the nearest month)

A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is financed at an interest rate of 0.75 a. Calculate the required monthly loan payment on the car. b. How much does your friend still owe on the car loan immediately after she makes the 24th monthly payment? c. If, after the 24th payment, she decides to pay $100 more each month, how many months will it take her to payoff the remaining loan a. The required monthly payment is (Round to the nearest cent.) b. Your friend still owes $ on the car loan. (Round to the nearest dollar) c. It will take her months (Round-up to the nearest month)

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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4) Brenda is buying a living room set for her home. At Furniture, Inc., she picks out a set for a total cash price of $1,899 The salesperson tells her if she qualifies for an installment loan, she may pay 10% down and finance the balance with payments of $88.35 per month for 24 months?
Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment occurring one month from today. If the annualized interest rate for car loans is 8%, what is the maximum amount he borrow to purchase a car? Enter a positive number as your answer and round to the nearest dollar.
While buying a new car, Alexander made a down payment of $1,100 and agreed to make month-end payments of $290 for the next 5 years and 7 months. She was charged an interest rate of 4% compounded semi-annually for the entire term.a. What was the purchase price of the car?Round to the nearest centb. What was the total amount of interest paid over the term?
A retired couple buys a new recreational vehicle (RV) for $42,000.00. They make a down payment of $13,000.00 and finance the balance at 9.0% APR over 60 months. Their monthly payment is $601.99. Instead of making the 12th payment, the couple decides to pay the remaining balance on the loan. Use the actuarial method to determine how much interest the couple will save. If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635, in your textbook to solve this problem, the result will match exactly with one of the answers. If you use a spreadsheet to do the computation, your result will not match exactly with any of the answers, but it will differ only very little (mostly less than $1) from the "correct" answer. O $4,650.28 O $4,705.06 $5,620.19 $6,814.22
Nona purchased a new car earlier today for $24,000. She financed the entire amount with a five-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 2 years (i.e., after 24 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $
After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000—with no ($0) down payment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount Payment Interest Paid Principal Paid Ending Balance 1 $45,000.00 2 3 4 -$0.02
Arianne borrowed $6200 to buy a vehicle to drive to school. She plans to study for 3 years, and then start her career using her education. Interest is charged on the loan at 7.64% compounded annually. If she starts making month-end payments of $230 when she begins working, how many payments will she have to make?
Nona purchased a new car earlier today for $33,000. She financed the entire amount with a six-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 3 years (i.e., after 36 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ tA
A couple wants to purchase a new house and feel that they can afford a mortgage payment of $600 a month. They are able to obtain a 30-year 7.4% mortgage (compounded monthly) but must put down 20% of the cost of the house. Assuming that they have enough savings for the down payment, how expensive a house can they afford? The couple can afford a house that costs up to $ ☐ . (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
Ali obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 3.6%. His loan is for $14,300 for 78 days. Assume each day is 1365 of a year. Answer each part below. round your final answers to the nearest cent. (a) Find the interest that will be owed after 78 days. $ (b) Assuming Ali doesn't make any payments, find the amount owed after 78 days. $
Jennifer Kaufman bought a used Toyota Prius for $16,500. She made a $4,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)
A friend of yours just bought a new sports car with a $5,000 down payment,and her $30,000 car loan is financed at an interest rate of 0.75% per month for 48 months. After two years, the “Blue Book” value of her vehicle in the used-car marketplace is $15,000. Solve, a. How much does your friend still owe on the car loan immediately after she makes her 24th payment? b. Compare your answer to Part (a) to $15,000. This situation is called being “upside down.” What can she do about it? Discuss your idea(s) with your instructor.

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