(Annuity number of periods) Alex Karev has taken out a $180,000 loan with an annual rate of 11 percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,000 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $3,500 per month? Use five decimal places for the monthly percentage rate in your calculations. a. If Alex can pay $3,000 per month, the number of years it takes for him to pay off the loan is years. (Round to one decimal place.)

(Annuity number of periods) Alex Karev has taken out a $180,000 loan with an annual rate of 11 percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,000 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $3,500 per month? Use five decimal places for the monthly percentage rate in your calculations. a. If Alex can pay $3,000 per month, the number of years it takes for him to pay off the loan is years. (Round to one decimal place.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Alex Karez has taken out a loan of $180,000 with an annual rate of 11% compounded monthly to pay off hospital bills from his wife lzzy's illness, If the most Alex can afford to pay is $3,500 a month, how long will to pay off the loan? How long will it take to pay off the loan if he can pay $4000 each month? If Alex can pay S3,500 a month, how many years will it take to pay off the loan? To pay for your education you have taken out $28,000 in student loans. If you make monthly payments over 13 years at 6% compounded monthly, how much are your monthly student loan payments?
Joshua borrows 35,000 pesos from a cooperative to buy a laptop. He will repay the loan in equal monthly payments over 2 years at the end of each month. If he is charged 10% interest compounded monthly, how much is his monthly payment? What is the total amount that he repays?
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.45% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $3,600? Yes, under these conditions, Chuck will meet his goal.No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) try to negotiate a lower interest ratemake a higher down paymenttry to bargain for a higher sale pricetry to bargain for a lower sale pricemake a lower down paymenttry to negotiate a higher interest rate (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.95% loan if Chuck can pay 20% down. What…
Todd is able to pay $360 a month for 6 years to finance a car purchase. a. If the interest rate is 6 percent compounded monthly, how much can Todd afford to borrow to buy a car? b. What is the effective annual rate of Todd's loan?
April borrows $20000 at an interest rate of 7% to purchase a new automobile. At what rate (in dollars per year) must she pay back the loan, if the loan must be paid off in 5 years? (Use decimal notation. Give your answer to two decimal places.) withdrawal rate: $ per year
"Nathaniel is saving $172 per month. If their account earns a 2.5% interest rate, how many years will it take before they can buy a $28, 000 car? Enter your answer to two decimal places"
David is planning to buy a new car. Since David has not save any money, he plans to take out a loan to pay for the car. He is able to finance $43,950 with a 5 year loan. The loan has a APR of 3.25% compounded monthly. Round answers to two decimal places a. What is the minimum payment amount David will need to make for his car loan? b.How much will David pay altogether over the life of his car loan?
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $185,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,300 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ 4257.64 × Can he pay off the loan and keep his payments under $4,300? Yes, under these conditions, Chuck will meet his goal. No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) □ □ □ □ □ make a lower down payment try to bargain for a lower sale price make a higher down payment try to negotiate a higher interest rate try to bargain for a higher sale price try to negotiate a lower interest rate
Kenji wants to retire with an income of $7000 per month over 25 years. His money is saved in a retirement account that pays 6% per year compounded monthly. SHOW how you arrived at your answer by reporting formula(s), variable values, or TVM Solver inputs. a. How much does Kenji need to have saved in retirement to have enough for the $7000 per month income? Include correct units. b. How much does Kenji need to save each month if he works for 30 years in order to have saved the amount from part a? Include correct units.
Josh has always dreamed of opening a café by the seaside. He decides he will save to help open the café by depositing money in an ordinary annuity that earns 4.8% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money will he need to deposit into the annuity each quarter for the annuity to have a total value of $24,000 after 7 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $0

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