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: 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: 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…

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.