A sailboat costs $27,448. You pay 25% down and amortize the rest with equal monthly payments over a 8-year period. If you must pay 7.2% compounded monthly, what is your monthly payment? How much interest will you pay? Monthly payments: $ (Round to two decimal places.) Interest: $ (Round to two decimal places.) C

Q: You purchase an RV by making a down payment of $10,700. The terms of your finance agreement have an…

A: The down payment is $10,700 The annual interest rate is 2.66% compounded monthly The total number of…

Q: A Chevrolet Sonic Hatchback costs $14,375.00. With a 7% down payment, you can have an amortized loan…

A: Initial cost of car = $14,375 Down payment = initial cost of car * 7% = 14,375 * 0.07 = $1006.25…

Q: Type the number of months:

A: Future value refers to the amount at some future date of the asset present today on the basis of…

Q: You need to borrow $750,000 to purchase a new house. JRE bank will loan you the money at an APR of…

A: Amortization of loan refers to the regular and systematic repayment of the loan amount along with…

Q: If you buy a computer directly from the manufacturer for $2,815 and agree to repay it in 36 equal…

A: Present value = pv = $2815 Compound = monthly = 12 Number of payment = n = 36 Interest rate = r =…

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: Car cost 9000; 1000 down payment; need a loan of 8000; auto financing calculates interest for the…

A: Loan amount= $8000 Time period= 4 years Rate= 10% interest Monthly payment= ?

Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 24%, compounded…

A: Principal = $1,100APR = 24%Minimum monthly payment = $24.75

Q: Car cost 9000; 1000 down payment; need a loan of 8000; auto financing calculates interest for the…

A: Using excel PMT function to calculate periodic payment  Interest on Loan =(periodic payment * no. of…

Q: 2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed to pay for the rest at 1%…

A: The question is based on the concept of Financial Management. Annuity refers to the amount of equal…

Q: The truck that we will use in our business costs $100,000. 10% of this cost will be paid as a down…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: If you buy a computer directly from the manufacturer for $2,417 and agree to repay it in 36 equal…

A: 1. Present value of annuity. PV = A * 1-(1+r)-nr where , PV = Present value of annuity. A = periodic…

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…

Q: A new furniture set costs $ 3200. If you make a down payment of $ 400 and finance the rest at a rate…

A: Repayment amount refers to the total amount taht is being paid for the repayment of the amount…

Q: The truck that we will use in our business costs $90,000. 10% of this cost will be paid as a down…

A: A loan amortization is used present monthly PMTs, interest repaid, and principal repaid.

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The cash price or the purchase price will be the current worth of all the payments made on a monthly…

Q: You would like to buy a house for $850,000. You put $180,000 down, and then get the rest at 7.5%,…

A:

Q: You want to buy a $12,000 car. The company is offering a 3.9% annual interest rate, compounded…

A: Monthly interest rate = Annual interest rate/Frequency of compounding in a year = 0.039/12 = 0.00325…

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: If you buy a computer directly from the manufacturer for $3,237 and agree to repay it in 48 equal…

A: a loan, payments made by the borrower are typically applied first to the interest owed, and then to…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: If you buy a computer directly from the manufacturer for $2,668 and agree to repay it in 48 equal…

A: Formula:- Present value of annuity. PV = A * 1 - (1+r)-nr where , PV = Present value of annuity. A…

Q: A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate…

A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: Suppose you make a down payment of 6% of $27,600 for a car and finance the rest at 1.5% compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Give typing answer with explanation and conclusion you want to borrow $71,400 from your local bank…

A: The idea of the time value of money (TVM) holds that a quantity of currency is valuable currently…

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: You are buying a house for $120,000.00 with a downpayment of $12,000.00. The loan will be paid back…

A: An amortized loan refers to a type of loan that is repaid over a set period through regular…

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: You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments…

A: Monthly Payment (PMT) = P * r * [ (1 +r)n /({1 + r}n -1)] Where P = Principal amount borrowed…

Q: A Chevrolet Sonic Hatchback costs $14,640.00. With a 9%​ down payment, you can have an amortized…

A: Initial cost of car = $14,640Down payment = initial cost of car * 9% = 14,640 * 0.09 = $…

Q: $5476.6 monthly  If you can afford to pay the monthly payment from the above calculation, how much…

A: Here, Monthly Payment is $5476.6 Time Period (n) is 20 years Interest Rate (Rate)  is 6.25%…

Q: You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no…

A: The present value of monthly repayment will be equal to the value of loan amount. Monthly interest…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.