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: Consider borrowing $250,000 to purchase a house at a 4% annual interest rate to be paid in full in…

A: The debt amortization schedule refers to the table that showcases the interest and principal…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…

A: Balloon payment is the final payment made at the end of loan to close and settle the loan and close…

Q: pose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 y PR of…

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

Q: A Chevrolet Sonic Hatchback costs $14,375.00. With a 7% down payment, you can have an amortized loan…

A: Initial cost of car = $14,375 Down payment = initial cost of car * 7% = 14,375 * 0.07 = $1006.25…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: When a loan's conditions, including its interest rate, payment schedule, or other terms, are…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: Suppose you take out a 45-year $250,000 mortgage with an APR of 6%. You make payments for 3 years…

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

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 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 are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,…

A: To find the balloon payment for the Tesla Model X SUV:- Calculate the monthly interest rate using…

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: To finance the purchase of a new factory recently, you’ve arranged for a 40-year mortgage loan for…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed. The APR is usually…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…

A:

Q: In early May 2021, you could buy a new 2021 Toyota RAV4 LE SUV with list price of $27,425 with a…

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

Q: After graduating from college and securing your first job in your field of study, you need to…

A: Car price = $92,500Down payment = 2%The amount of loan is

Q: You are buying a house for $130,000.00 with a downpayment of $26,000.00. The loan will be paid back…

A: Concluding payment is calculated as under-

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: A loan refers to a contract between a borrower and a lender where a sum is exchanged on the promise…

Q: You want to buy a car. The loan amount will be $29,000. The company is offering a 4% interest rate…

A: Annuity is a series of equal periodic payments for a specified period.With periodic rate (r), period…

Q: you decide to buy a car for $25,635, including taxes and license fees. You saved $6000 for a down…

A: Loans are paid by equal monthly installments and these monthly installment carry payment for…

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $7000…

A: Amortization of a loan refers to the process of gradually paying off a debt or loan over a fixed…

Q: Please explain how to do this in Excel. Please explain how you did it and what the results mean. You…

A: Sale Price = $650,000Down Payment = 20% of Sale PriceTime Period = 30 YearsInterest Rate = 7.2%

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: Suppose you have a student loan of ​$50,000 with an APR of 6​% for 30 years.   a. What are your…

A: Here,Loan Amount is $50,000APR is 6%Time Period is 30 years

Q: 3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house.  a. What will be the…

A: Calculation of Monthly Payment and Interest Paid: Excel Spreadsheet:

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: rates for types of loans in 2021. Assume monthly payments and compounding periods. HINT [See…

A: The time value of money is a concept in finance that recognizes the idea that a sum of money has…

Q: Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a)…

A: We need to use loan amortisation formula to calculate monthly payment of loan. The formula is PMT…

Q: You want to buy a $29,000 car. The company is offering a 2% interest rate for 48 months (4 years).…

A: The monthly payment for an amortized loan can be determined using either a formula or the Excel…

Q: The present value price of a car you would like to purchase today is $17,990. You are approved for a…

A: In this question one has to solve the monthly payment. Monthly payment can either be found out by…

Q: Suppose you can afford $500 monthly payments and you will be able to pay $9000 as a balloon payment…

A: Balloon payments refer to the lump sum amount that is to be paid at the end of the period of the…

Q: A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 %  down payment, you can have an amortized…

A: Down payment- While purchasing a asset, the payment which is made upfront is called down payment.…

Q: A Chevrolet Sonic Hatchback costs $14,640.00. With a 9%​ down payment, you can have an amortized…

A: Initial cost of car = $14,640Down payment = initial cost of car * 9% = 14,640 * 0.09 = $…

Q: BMW will sell a $55,000 car for $890 per month for 72 months. What is the annual interest rate?…

A: Monthly Payment=$850Selling Price of the Car=$55,000Time Period=72 monthsRequired:Annual Interest…

Q: Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making…

A: Car cost = Future Value Required = 40,000 Time Period = 60 months Monthly Deposit = ? First Month…

Q: Suppose that you need an amount of money which equals to $10000000. It is possible to find it from…

A: To find equal monthly payments we have to calculate present value FACTOR and find equated monthly…

Q: You have saved $6,946 for a down payment on a new car. The monthly payment you can afford is $495.…

A: Down Payment = $6,946Monthly Payment (PMT) = $495Number of compounding periods (n) = 48…

Q: You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no…

A: The present value of monthly repayment will be equal to the value of loan amount. Monthly interest…

Q: A borrower is purchasing a property for $180,000 and can choose between two possible loan…

A: Loan alternatives refer to the options that are available for the borrower to avail debt. He/she can…

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: You want to buy a car and will need a loan of $22011. This will be a 36 -month loan. If the annual…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

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…

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.