At the end of 2021, the MSRP of a brand new 2021 Tesla Model 3 is $43, 190. Suppose you take out a 3-year car loan with $41, 000 at 2.475% interest. How much would the minimum monthly payment be? Now, suppose you took out a 6-year car loan for the same amount. How much would the new minimum monthly payment be?

Q: You want to buy a $191,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Cost of home = $191,000Down payment = 15%Loan terms = 30 yearsInterest rate = 7%

Q: Suppose you borrow $21,000 from your bank to buy a car.  You agree to pay $433.89 per month for 60…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and…

A: Negative amortization means interest on the loan is not paid due which the loan amount tends to…

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 are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly…

A: Loans are paid by equal fixed periodic payments that carry the payment of interest and also payment…

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $8000…

A: Autoloans are now common because they are paid in equal monthly installments and these monthly…

Q: You want to buy a $189,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Home value = $189,000Down payment = 0.15 (15%)Monthly interest rate (r) = 0.003291666667 (0.0395 /…

Q: a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You want to buy a $232,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Here, Particulars Values Purchase price  $ 232,000.00 Down payment  10.00% Time period (in…

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: You want to buy a $215,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The loan amount represents the money borrowed from a lender, whereas the monthly payment encompasses…

Q: Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The…

A: Amount you can borrow = Present value of the maximum monthly paymentsNOTE :here the monthly payment…

Q: You need to borrow $80,000 to purchase a car. You qualify for a 7-year car loan that requires you to…

A: Borrowing = 80,000 Time Period = 7 years or 84 months Monthly Compounding Interest Rate = 2.28%/12 =…

Q: ave selected a new car to purchase for $19,500. If the car can be financed over a period of 4 years…

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

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

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

A: Loan amount is the amount borrowed from the financial institutions such as banks, corporate houses,…

Q: Suppose you want to buy a house today that costs $139022. The bank requires you to make a 20% down…

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

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: The loan amount is $26,100 The monthly payment is $989 The total finance charge is $9,504 The loan…

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: Suppose you want to buy a $143,000 home. You found a bank that offers a 30-year loan at 3.9% APR.…

A: Information Provided: House price = $143,000 Loan period = 30 years Interest rate = 3.90%

Q: You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula  EMI = P × r(1 + r)n…

Q: Do you want to buy $187,000 home. You plan to pay 20% as a down payment and then take out a 30 year…

A: Given information: Purchase Price = $187,000 Loan = $187,000-20%=$149,600 Time = 30 years Since the…

Q: Suppose you would like to purchase a new mustang GT. The sticker price of the mustang you want is…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: you buy a stove. If the price of 78699 is cash a) How much will you pay each month if the rate…

A: To calculate the monthly payment for the stove, we can use the formula for the monthly payment of a…

Q: Suppose that you decide to borrow 13000 for a new car. You can select one of the following loans…

A: With the given information, we need to find the monthly payments and total interest for each of the…

Q: Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000…

A: Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor…

Q: Suppose you want to buy a $140,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: You borrow 30,000 to buy a new car.         If interest rate permonth is 0.45% and you intend to pay…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: 13) You take out a loan for $75,000 for 12 years at 6% monthly. What is the payment? a) how much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Your bank is offering you a mortgage loan for $100,000.  It is a fixed rate loan at 4% per annum…

A: Mortgage is a value which is borrowed from other sources like banks and its repayment is made in…

Q: Suppose you take out a 25-year $300.000 mortgage with an APR of 6% You make payments for 5 years (60…

A: Refinancing is the way or tool of switching out an existing loan (such as a mortgage, vehicle loan,…

Q: CRIA iV, N) Today you purchase a previously owned Tesla Model 3 for $40,000. You take out a 0.25%…

A: Loans are paid by the equal monthly installments and these have payment of loan amount and also…

Q: You want to buy a $151,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

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

Q: 20. Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this…

A: Mortgage a is long-term loan contract which requires the borrower to pay periodic payments with…

Q: Suppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual…

A: P= 100,000 (Principal Amount) T= 10 years (Maturity Period) R= 10% (Annual interest rate)   S.I.…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.