Chang bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $200 less than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 8% per year, and for the laptop it was 6.5% per year. The total finance charges for one year were $335. How much did each computer cost before finance charges? Desktop: S|| Laptop: S

Chang bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $200 less than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 8% per year, and for the laptop it was 6.5% per year. The total finance charges for one year were $335. How much did each computer cost before finance charges? Desktop: S|| Laptop: S

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.)
Solve this finance Not use excel 1. Mary Smith took a car loan of $20,000 to make 60 equal monthly payments. The interest compounds monthly. (a) Calculate the monthly payment for Mary, if the nominal interest is 9% per year.(b) (How much interest would Mary pay for taking the loan? (c) Immediately after making the 20th payment, if she wants to pay off the car loan, how much does she need to pay?
it For pre nments Unit Activity: Credit Cards and Large Purchases Buying a House Bethany and Samuel are buying a new house. They have $25,000 saved for a down payment and know that they can afford a monthly payment of $1,500 or less. They also know that the best interest rate they can get is 5.1% annually and they want to sign a 30-year mortgage. Part A If 5.1% is the annual interest rate, what is the monthly interest rate? BI U X² X₂ V 田 15px- Space used (includes formatting): 0/ 15000 V V Part B If they sign a 30-year mortgage, how many monthly payments will they make? BIUX² X₂ 15px M くく EEEEE 6 of 7 E Dec 1 1:56 Save & Exit
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1.Alice is an obsessive planner and she plans to buy a new laptop in 6 years (t = 6). The laptop costs $1,200 today (t = 0) but its price inflates at 4% per year. To finance this purchase, Alice deposits $200 each year during years t = 1,2,3, and then deposits $X during years t = 4, 5, 6. %3D %3D %3D The annual effective interest rate is i = 10%. Calculate X. 2.At an annual effective interest rate i%, i > 0, both of the following annuities have the same present value $X: (a) a 20-year annuity with annual payments of $55, (b) a 30-year annuity with annual payments of $30 per year for the first 10 years, $60 per year for the second 10 years, and $90 per year for the last 10 years. Find X
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