Assuming you have seen a car displayed in a mall with installment price of P500,000 with no interest. It is payable in installments of P10,000 at the end of each month. How much is the cash price of the car if the prevailing market rate of interest is 10% per year?

Q: The unpaid balance of an installment loan is equal to the present value of the remaining payments.…

A: 1) Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1) Where, P = Principal borrowed = (car price -…

Q: You want to buy a $183,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The down payment is the amount of cash paid while purchasing the home. The down payment decreases…

Q: You want to buy a $190,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: According to Bartleby guidelines, if a question involves multiple sub-parts, then 1st sub 3 parts…

Q: You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: We have a mortgage transaction on a home. We have to find some amounts based on the mortgage.

Q: You want to buy a car, and a local bank will lend you $35,000. The loan would be fully amortized…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Assuming you have seen a car displayed in a mall with installment price of 500,000 with no interest.…

A: Installment system allows the buyer of an asset to pay for the asset in regular payments over a…

Q: rs (60 months), and the nominal rate of interest will be 12 p st paid monthly. What would be the…

A: In this we need to calculate the present value factor monthly from that we can get monthly payment.

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: If you deposit OMR 8415 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: 1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate.…

A: Future Value(FV) is value of current amount at future point of time. FV is computed by compounding…

Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…

A: Each year Deposit RM 2500 Interest Rate 4%

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: You plan to invest $10,000 for 180 days. Your bank offers a rate of 2.60% on 90-day GICS and 2.85%…

A: We have in The Question, Principal = $10,000 Period = 180 days OPTION-1 90 Days GIC Interest Rate =…

Q: A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum…

A: because you have posted multiple questions, we will answer the first question only, for the remaning…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…

A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate =  2505,000×100%=5%

Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…

A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…

Q: You want to use a 50 thousand Euro loan from your bank for the annual repair and maintenance costs…

A: The given problem can be solved using PMT and FV function in excel. PMT function computes…

Q: Suppose you want to buy a $145,000 home. You found a bank that offers a 30-year loan at 3.1% APR.…

A: The concept of time value of money will be used and applied here. When we take a loan or a mortgage…

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay…

A: A= $220 R= 1% N= 60

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: Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A:

Q: se you recently bought a house for R1 650 000 and secured a home loan from the bank, with an…

A: Mortgage loans are paid by equal monthly installments and these carry the payment for interest and…

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

A: P= 675,000 (after down Payment) r= 0.4% (monthly) n= 10 yrs* 12months= 120 months Calculate interest…

Q: suppose you start saving today for a 40000 down payment that you plan to make on a house in 8 years.…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: a. How much is the monthly amortization? b. How much is the total interest?

A: Answer:

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

Q: If you deposit OMR 16830 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Amount of Deposit = OMR 16830 Interest Rate = 8%  Years =5 Interest Rate half yearly (r)=8%/2 =4%…

Q: You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized…

A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…

Q: Question 2: (a) You wish to buy a house. The market value of the house is $650,000 and you have…

A: The present value of the loan is equal to the sum of the present values of all future monthly…

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that…

A: Compound = Monthly = 12Present Value = pv = $90,000Time = t = 20 * 12 = 240Interest rate = r = 7 /…

Q: The bank officer is convincing a customer who is looking for a car loan. Compute the price the bank…

A: Ordinary annuity are the payments which are made at the end of a period.

Q: How much should an investor be willing to pay for an investment product that offers to pay 25,000…

A: Here we will have to use the concept of time value of money and find the present value of the…

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: A car is priced 35000. The price is expected to rise by 3% a year.If your local bank offers 10%…

A: Solution:- When an amount is invested in a bank, it earns interest on it. With rise of inflation,…

Q: How much should you deposit now into a certificate of deposit (CD) at a bank, if the CD matures 10…

A: To calculate the principal amount deposit in the bank , we have to use the following formula : A = P…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…