Carl Voigt, who recently won K10,000 in the lottery, wants to buy a car in five years. Carl estimates that the car will cost K16,105 at that time. What interest rate must he earn to be able to afford the car?
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- Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3% interest. Assume her payments will be made at the end of each year 1–4. If Tori’s old car can be traded in for $3325, which is her down payment, what is the most expensive car she can purchase?Hank purchased a car for $26,000 two years ago using a 5-year loan with an interest rate of 9.0 percent. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What’s the minimum price Hank would need to receive for his car? Calculate his monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.)Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,347.00 exactly 11.00 years from today. Assuming that Derek believes the appropriate discount rate is 10.00%, how much is he willing to pay for this money machine?
- Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most $500. If the prevailing interest rate is 2.4%/year compounded monthly for a 48-month loan, what is the most expensive car that Dan can afford, assuming that he will receive $6000 for his trade-in?Your mother wants to buy a car which will cost $15,000 five years from today. She would like save $2,450 at the end of each year (for the next five years) in an account, so as to have the amount she needs. What interest (to the closest percent) must she earn in this account to achieve this financial objective?Hank purchased a $20,000 car two years ago using a 9 percent, five-year loan. He has decided to sell the new car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would need to receive for his car?
- John is looking for a new car. He has a down payment of $1,000.00 and wants to pay $350.00 per month for 5 years. The best deal he found for an amortized loan is his local bank, at a rate of 2.65%. What is the highest price car he should consider buying?David is planning to buy a new car. Since David has not save any money, he plans to take out a loan to pay for the car. He is able to finance $43,950 with a 5 year loan. The loan has a APR of 3.25% compounded monthly. Round answers to two decimal places a. What is the minimum payment amount David will need to make for his car loan? b.How much will David pay altogether over the life of his car loan?Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside 25% of his salary. Aaron has set aside ready cash for the 20% down payment on his apartment and the remaining balance will borrow from the bank. The bank charges the nominal rate of 10% for a 20-year mortgage loan. What is the price of the most expensive apartment that Aaron can buy?
- Hank purchased a car for $20,500 two years ago using a 4-year loan with an interest rate of 6.0 percent. He has decided that he would sell the car now if he could get a price that would pay off the balance of his loan. What’s the minimum price Hank would need to receive for his car? Calculate his monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Minimum Price = $_____.__Greg wants to buy a $25,000 car today, but he doesn’t have the cash to buy it. The dealership is offering to loan Greg the money at 8% interest with payments made monthly for the next five years. If Greg chooses to buy the car, how much would his monthly car payments be?Derek decides to buy a new car. The dealership offers him a choice of paying $518.00 per month for 5 years (with the first payment due next month) or paying some $28,412.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options? Submit