An advertisement for a new motor car encourages you to purchase it for a deposit of R13126 and monthly payments of R1261 at an interest rate of 11 pa compounded monthly. If the repayment period is 5 years with payments in arrears, calculate the cost price of the motor car.

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

A: The idea of a time value of money (TVM) holds that a quantity of income is valuable greater now than…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

Q: After deciding to get a new car, you can either lease the car or purchase it with a three-year loan.…

A: A loan is a financial instrument that involves the lending of money by one or more individuals,…

Q: Consider the following two options proposed by an auto dealer: Option A: purchase the vehicle at the…

A: The time value of money is a concept in finance that takes into account the effect of compounding,…

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: Construct an amortization schedule (monthly) with the followings: House Price: 700,000 Down Payment:…

A: We take loans from a bank to buy big ticket items like a house or a car.The loan is repaid through…

Q: You want to buy a new sports car from muscles motors for $79000. The contract is in the form of a…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: How long will have P250,000 for a down payment on a car if deposit of P12,500 at the beginning of…

A: The deposits are being made at the start or beginning of each month. Hence this is a case of annuity…

Q: ans are available for a company to obtain automobiles for its salesmen. Use an interest rate of 10%.…

A: In this we need to calculate the present value of both option and select the best.

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…

Q: You purchase a car priced at 750,000 Php. You paid 10% as the down payment and the remaining balance…

A: Using Excel pmt formula to calculate  monthly payments

Q: You work for a pharmaceutical company that has developed a new drug. The patent on the drug will…

A: Present value is  the current value of sum of money in contrast to the future value it will have…

Q: You are required to purchase one plot costing of Rs. 2800000 and the owner make a payment plan for…

A: Present value is a financial term that depicts today's worth of a sum to be received at some point…

Q: You wish to buy a car that has a monthly payment of $250 and with a down payment of $1000. You find…

A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

Q: 1. What would have been the normal monthly payment for a loan like this?  R  Blank 1. Fill in the…

A: The monthly payment on a loan refers to the periodic repayment amount extended to the lender. Loan…

Q: two choices. Choice 1: 30-year fixed rate at 6 % with closing costs of $1800 and no points. Choice…

A: Housing loans are refer as the amount of money borrowed from financial institution or bank to…

Q: can be purchased by paying a down payment of P15 ents, the first installment to be after two years…

A: Here, Interest Rate is 15% Compounded Semi-annually Details of First Option: Down Payment is…

Q: sidering buying a new car. The sticker price is $15, ment. If you can negotiate an annual interest…

A: In this we need to calculate present value factor and get monthly payment.

Q: When you purchase your car, you take out a five-year annual-payment loan with an interest rate of…

A: Here we will first have to determine the amount of loan taken. We are provided with annual payments,…

Q: You would like to purchase a car that costs $47000 at 7% APR for 3 years. What is your monthly…

A: Cost (PV) = $47000 Interest rate = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period…

Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…

A: The financed car loan requires a 10% down payment, which is: $9500 x 10% = $950 So, the amount…

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…

Q: If I will loan a house and lot worth P6.3M cash and with a little discussion and transaction with…

A: In this question the monthly payment needs to be calculated and the future worth of the overall…

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 plan to obtain a $10000 loan from a furniture dealer at 10% annual interest rate that you will…

A: Annual loan payment is the repayment of loan annually for the period of loan, that includes interest…

Q: Compute the monthly payments $16400 if you financed the entire an annual interest rate of 6.50 p oan…

A: Cost of vehicle = $16,400Number of years = 4 yearsInterest rate = 6.50%

Q: You purchase an old used car from a friend with agreed upon installments that will be paid out over…

A: Today=1400After 1 year=15401000 for 4 years.Interest rate=0.35% monthly

Q: For item (13) A car is to be purchased in monthly payments of P17,000 for 4 years starting at the…

A: Present value of any loan or borrowing is the sum of the down payment initially and the value of…

Q: you are buying new television. from past experience you estimate future repair cost as P500 during…

A: Capital Budgeting is the process of assessing long-term decisions made by management in order to…

Q: You need a loan of $130,000 to buy a home. Calculate your monthly payments and total closing costs…

A: Loan refers to the amount borrowed from the financial institution against which the borrower is…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $505,000 home…

A: Here,ParticularsValuesPurchase price of home $   5,05,000.00Percentage of down payment20.00%Number…

Q: A couple wants to buy a $32.000 car and can bonow the money lor the puechase at 8%, payingtofin3 4,…

A: If car is financed over 3years, the payment is P(3)=$1002.77 It's meaning is that, the couple has to…

Q: The buyer of a car makes a down payment of P225000 and pays P20794.52 at the end of each month for 5…

A: Down payment (DP) = P 225000 Monthly payment (P) = P 20794.52 Period = 5 Years Monthly period (n) =…

Q: home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

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: finance your new SUV with an auto loan of $38,000. This loan will b d compounding) at a 4% annual…

A: Auto loan=$38000Monthly interest rate=r=0.33%Period 3 years=36 months

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: 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 plan to buy a car for R250 000, you will give a deposit of R25000. The remainder of the cost…

A:

Q: 2.You are paying Php3,500/month on your motorcycle loan for 3 years with an interest rate of 10%…

A: Monthly interest rate (r) = 0.008333333333 (i.e. 0.10 / 12) Monthly period (n) = 36 (i.e. 3 years *…

Q: Find the present value of the following annuities. Assume the discounting occurs once a year A. The…

A: The present value is calculated by multiplying the annual cash flows with the present value annuity…

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: The car dealership is offering to sell you the 2014 Corvette with only minor axle damage for $308…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

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.