After reviewing your budget, you can afford to pay $720 per month for a new car. You are looking for an amortized loan with a bank. The current market rate for car loans is 1% per month for 48 months. How much money can you borrow? Round to the nearest penny. Your Answer:

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Q: You recently graduated from Miami University and are looking to purchase a new vehicle. The car…

A: Monthly Payment:A "monthly payment" refers to a recurring amount of money that is paid on a monthly…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over…

A: Given: Loan Amount $10,000Annual Nominal Interest Rate 9%Number of Payments = 5 years * 12 months60…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

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

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A: The term mortgage refers to a type of loan that is for the long term, and it usually has the asset…

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A: Car price = $92,500Down payment = 2%The amount of loan is

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

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A: Amortization is the systematic repayment of loan and interest for a decided period of time. Each…

Q: you decide to buy a car for $25,635, including taxes and license fees. You saved $6000 for a down…

A: Loans are paid by equal monthly installments and these monthly installment carry payment for…

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A: The time value of money is a concept in finance that recognizes the idea that a sum of money has…

Q: You look at your budget and decide that you can afford $290 per month for a car. What is the maximum…

A: Annuity payment (P) = $290 Monthly interest rate ( r ) = 0.25% (3%/12) Number of Periods (n) = 60…

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A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

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A: Using excel PV function

Q: You look at your budget and decide that you can afford $260 per month for a car. What is the maximum…

A: Compound = monthly = 12Monthly Payment = p = $260Interest Rate = r = 5 / 12%Time = t = 7 * 12 = 84

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash…

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under…

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A: The amount that can be borrowed should equal the present value of future payments. This is based on…

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A: Future value of annuity The future value of annuity refers to the total value of the investment at…

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A: Variables in the question:PMT=$400Annual interest rate=6%Monthly interest rate=6%/12=0.5%N=5…

Q: You are looking to buy a car. You can afford $460 in monthly payments for four years. In addition to…

A: APR = 7.25% or 0.0725Monthly rate (r) = 0.0725 / 12 = 0.00604166666Monthly payment (PMT) =…

Q: You wish to buy a car at a cost of $45,000. Ford Credit will finance the car at 3.9%/year over 48…

A: The two proposals can be made indifferent if their present worth will be same after offering the…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.