AMG Services offers to lend Scott Tucker $5,250 which he needs to repair his sports car.  AMG’s loan offer is subject to an APR of 14.6 % interest rate with monthly compounding. How long will it take Scott Tucker to pay off the loan if he makes $95 monthly payments?

Q: How much finance charge will he get credit for if he pays the loan in full​ immediately?

A: A finance charge is the total cost of borrowing money or getting credit, which includes interest and…

Q: Rich buys a car for $34,000 and has two options for financing. The dealership offers either…

A: Time value of money :— According to this concept, value of present money is greater than the value…

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to…

A: The PV annuity formula for monthly payment of loan is: PV=PMT×1-(1+i)-ni Here PV=4000 PMT=? n=60…

Q: Sam takes out a bank loan for $12750 that he will repay with 13 monthly payments at j1 = 5.25%. Sam…

A:

Q: Hans takes out a loan for his college tuition from a bank that charges simple interes annual rate of…

A: In simple interest there is interest on the loan amount only and there is no interest on interest…

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1…

A: using excel NPER formula to calculate the time taken to repay the loan amount…

Q: Jake is considering to take out a loan of $10,000 to fund this promotion service. The bank has…

A: Here, Loan Amount is $10,000 Details of Three Options are as follows: Option 1: Jake needs to make…

Q: Mason borrows $41,217.00 to buy a car. He will make monthly payments for 6 years. The car loan has…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Stephen has just purchased a home for $162,000. A mortgage company has approved his loan application…

A: Buying a house is a once in a life step. Most of the people buying a house do not have enough cash…

Q: k borrows $318,449.00 to buy a house. He has a 30-yearmonthly payment mortgage with a rate of 5.70%…

A: Mortgage loans are secured loans and the home is collateral and being paid by the monthly payments…

Q: Jodi takes out a loan to buy a car for $29,000. If her monthly payment is $500 and the annual…

A: Using finance we need to find the NPER FIND NPERRATE = 8%/12PMT = 500PV =-29000FV =0 We will get…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: Data given: Offer 2: PV=Loan amount=$16000 PMT=$4200 Rate=16%   Required: Time required to payoff…

Q: To go on a summer trip, Bob borrows s700. He makes no payments until the end of 4 years, when he…

A: The total interest to be paid is calculated as simple interest amount for 4 years whereas total…

Q: Gerritt wants to buy a car that costs $30,250. The interest rate on his loan is 5.61 percent…

A: Here, Cost of Car (PV) is $30,250 Interest Rate (r) is 5.61% Compounding Period (m) is Monthly i.e…

Q: the amount financed the finance charge The deferred payment price.

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Ellery purchases a home with a loan of R149 000. The 30-year loan term and 7,5% interest rate apply…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: roy already had a balance of $104.75 on his credit card when he used it to purchase items totalling…

A: In this we need to find out the annual effective interest rate and from than we can get the monthly…

Q: While buying a new car, Alexis made a down payment of $1,200 and agreed to make month - end payments…

A:

Q: Aidan wants to pay off the loan on his refrigerated trailer on which he has made 15 payments. If…

A: When a series of equal periodic payment is made against a loan, it is termed as annuity. This…

Q: Wants to buy a car that costs $37,800.  Qualifies for a 4-year loan with 5% annual interest rate and…

A: Down payment refers to the payment that is given as the first payment for buying something and the…

Q: Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment…

A: It is a case where the amount of loan to be borrowed by Dolph is to be calculated, based on his…

Q: Arnold has determined that he can afford a monthly payment of $325 for a car. If he can obtain a 4…

A: Here, Affordable Monthly Payment (PMT) is $325 Time Period in years (n) is 4 years Interest Rate (r)…

Q: Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and…

A: Calculation of monthly payment: Answer: Monthly payment is $995.40

Q: David Puddy is car shopping and plans to buy a 2019 Toyota Corolla. After making a down payment,…

A: An Annuity is simply a fixed amount which is used to pay off a loan in equal installments In this…

Q: Andy wants to buy a car that costs $22,750. The dealership will finance the car for 5 years, at…

A: Loans are the debt obligations of a company that are shown on the liabilities side. These are paid…

Q: Bob purchases a car for $28,000. He makes $640 a month payments for 36 months on a 6.9% interest…

A: Excel formulas:

Q: To go on a school trip, Felipe borrows $700. He makes no payments until the end of 4 years, when he…

A: Future Value: A present asset's future value, abbreviated as FV, is the value that asset is expected…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.