not use ai please Assume that you are planning to purchase a car that is selling for $22,500. Tax, tags, andlicense will add another $1,800, for a total of $24, 300. Your local bank has told you that ifyou make a 5 percent down payment (of the total amount), that they will loan you therest. The terms would be 48 months with a nominal annifal interest rate of 8.40 percent,compounded monthly. Alternatively, they would be willing to extend the loan to 60months, but would now require a slightly higher nominal annual rate of 9.0 percent,compounded monthly. Given this information, determine the difference in what youwould pay each month for these two options.$74.70$88.71$70.03$79.37$84.04

To determine the monthly payments for both loan options, we'll use the formula for the monthly…

Answered: Assume that you are planning to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The first bank allows you to pay $2595.78 at the end of each year for six years. The first payment is to be made at the end of the first year. The second bank offers equal monthly loan payments of $198.87, starting at the end of first month. What are the interest rates that the banks are charging? Which alternative is more attractive?
A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5% per year. The customer expects a monthly repayment schedule from you, to plan his repayment. Provide a loan amortization schedule for a monthly repayment of 1 year. (Amortization factor is 0.952 )
You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years. However, the bank requires you to make down payment of 10% of the amount you want to borrow and will lend you the rest. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments then what will be your approximate monthly installment on the amount that you borrow? Group of answer choices $170.43 $154.31 $171.45 $160.31
You want to buy a $120,000 house, and you apply for a mortgage loan. The bank requires a 20% down payment. It will give you a 25-year loan at 8.75% annual interest rate, payable in monthly installments. How much is your monthly payment? use monthly compunding formula
You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the price to $29,000. You have $3,000 to put towards the down payment and plan to get a loan for the rest. If you can get an annual interest rate of 7 percent APR (with monthly compounding) over a 5-year period, what would be your monthly payment? Round it to two decimal place
Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discount interest loan). Also, assume that the bank requires you to maintain a compensating balance equal to 10 percent of the initial loan value. What effective annual interest rate are you being charged?
You are going to borrow $30,000 to purchase a car. You agree to repay the loan in 36 monthly payments of $996.43 each. What is the nominal interest rate (APR) of this loan if interest is being compounded monthly? Express your answer as a percentage rounded to the nearest one- hundredth decimal place (for example, enter 15.47 for an answer of 15.4695236%).
you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per month. The bank offers three choices for the loan: a four-year loan with an APR of 7%, a five- year loan with an APR of 7.5%, and a six-year loan with an APR of 8%. Which option best meets your needs, assuming you want to pay the least amount of interest?
A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5% per year. The customer expects a monthly repayment schedule from you, to plan his repayment. Provide a loan amortization schedule for monthly repayment of I year.
You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford tomake monthly payments of $1,450, but no more. Assuming monthly compounding, what is thehighest interest rate you can afford on a 60-month APR loan?
You want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for 36 months (3 years). What will your monthly payments be? My monthly payment will be $_______
You are buying a house and will borrow $225,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.55 percent. Alternatively, she tells you that you can "buy down" the interest rate to 4.35 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round your answer to 3 decimal places, e. g., 32.164.)

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