A truck costing $120,000 is paid off in monthly installments over four years with 6.3​% APR. After three years the owner wishes to sell the truck. What is the closest amount from the following list that he needs to pay on his loan before he can sell the​ truck?

Q: If you borrow $3,600 to buy a car at 12% per year compounded monthly, to be repaid over the next…

A: Answer Borrowing amount = $3,600 Interest rate = 12% per year  Interest rate monthly = 1%  Time…

Q: Dave Krug finances a new automobile by paying $6,800 cash and agreeing to make 40 monthly payments…

A: Present value refers to the current date value of all future cash flows. The present value can be…

Q: Pedro bought a late-model car on credit that he will have to pay as follows: $ 105,400 down…

A: Down Payment = $105,400 Payment Per month = $14.284.62 Interest Rate = 1% per month Time Period = 3…

Q: Use the information for the question(s) below. You are in the process of purchasing a new automobile…

A: Loan: It represents the amount borrower from the lender by the borrower. The principal amount of…

Q: A home is purchased for $229,000 with an amortized loan over 30 years at an interest rate of 4.6%.…

A: Purchase price =                 2,29,000         Loan Tenure =  30 years       Interest rate =…

Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…

A: Monthly mortgage payments or EMI simply means the monthly loan payments made for the loan. A monthly…

Q: A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Wade Ellis buys a new car for $16,882.14. He puts 10% down and obtains a simple interest amortized…

A: An amortized mortgage refers to a type of loan where the borrower makes regular payments over a…

Q: monthly payments for th

A: Monthly payment refers to the amount which is due and paid in regular intervals to an organization…

Q: Holly received a 15 year loan of $340,000 to purchase a truck. The interest rate on the loan was…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: a. lane borrows $30,000 for 10 years. She wishes to pay it off with five payments. The first payment…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: A farmer bought a tractor costing P12,000 if paid in cash. The tractor may be purchased by…

A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…

Q: Robyn is considering the purchase of a new car that sells for $34,000. Čalculate her monthly payment…

A: Using the PMT function

Q: A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000;…

A:

Q: Ms. Smith agreed to purchase a property for $400,000 under the following terms: 80 percent…

A: We have a home loan amortization problem. We have to find the outstanding balance at the end of year…

Q: Find the APR (rounded to the nearest tenth of a percent) for the loan described below. Purchase a…

A: APR: APR stands for annual percentage rate. which means the annual percentage rate on purchases.…

Q: Mrs. Martha bought a screen that has a cash price of $ 18,000. She made the purchase on credit,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: a. How many payments are required to s-

A: A loan refers to the amount that should be taken by the borrower from the lender for a specific…

Q: A pottery factory purchases a continuous belt conveyor kiln for $48,000. A 6.2​% APR loan with…

A: Given: Rate =6.2%Time =monthlyPmt =$428.13Present Value(PV)=$48000

Q: n financing a new shopping center, the owner receives a loan of P1M at the beginning of each 6…

A: Deferred annuity refers to a contract payment wherein the account holder is promised to receive a…

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: Nina takes a fixed-rate, 30-year loan with a monthly payment of $1,300.00. The amount financed was…

A: Given  Monthly payment =$130000 year =30 amount financed =$180000

Q: ve Krug finances a new automobile by paying $6,100 cash and agreeing to make 20 monthly payments of…

A: Compound = Monthly = 12Down Payment = d = $6100Number of Payment = n = 20Monthly payment = p =…

Q: You purchase a vehicle for $25,000 at an 8% APR.  Your loan term is 72 months.  After one year of…

A: Compute the monthly interest rate, using the equation as shown below: Monthly rate=Annual rate12…

Q: You decided to buy a new car and the dealer's best price is $49,900. The dealer agrees to provide…

A: Loan amortization table shows the ditribution of periodic payments towards principal and interest…

Q: a. Find the balance owed after 5 years b. Determine the cost of the loan (interest). c. If an extra…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a…

A: Working Sheets                     Loan 41000.00       rate  0.03 P.A     tenure 72.00…

Q: ase a used sports utility vehicle costing $30,000 by taking out a 9% add-on installment loan. The…

A: Answer : Cost of vehicle = $30,000 Time= 5 Years rate = 9% Down payment = $30,000*15% = $4,500…

Q: Find the monthly payment for the loan indicated.  yo purchase a home, a family borrowed $97,000 at…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: What is the balance of the loan at the end of year 3? $0.00 Round to the nearest cent c. By how much…

A: Loans are paid by the monthly equated payments that carry the payment for loan principal amount and…

Q: Orestes purchase a patio set costing $2,430 by taking out a 12.5% add-on installment loan. The loan…

A: The monthly payment can be calculated by finding the interest payments and then calculating the…

Q: Corey buys 10 Tufflift 4-post, 4.5-ton car hoists for his parking garage at a total cost of…

A: Future value of amount formula:-FV = A * (1+r)nwhere,FV = future value of amountA = Amount…

Q: QUESTION 5 A bank originates a 30 year fully amortizing FRM at an annual interest rate of 5.5%. 9…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A new homeowner is purchasing a living room set for $2,590 and must decide between two financing…

A: Total cost refers to the total price paid by the buyer to acquire the commodity. If the commodity is…

Q: to purchase a home a couple borrowed $280,000 at 5.1% compounded monthly for 25 years. after making…

A: Initial Borrowing2,80,000Interest rate5.10%No of years25Monthly repayment1,653.21Refinancing…

Q: xandra received a 30 year loan of $280,000 to purchase a he the loan was 4.60% compounded…

A: Loans are paid by the equal monthly payments and these monthly payments carry the payment for…

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.