I buy a second-hand car for $15,995. The firm offers a nominal finance rate of 9.5% per annum and requires no deposit and 24 equal monthly repayments. (a) How much would I pay each month? (b) How much would I owe the finance company immediately after the 18th payment? (c) How much of the first payment is interest? (d) How much of the 19th payment is interest?

I buy a second-hand car for $15,995. The firm offers a nominal finance rate of 9.5% per annum and requires no deposit and 24 equal monthly repayments. (a) How much would I pay each month? (b) How much would I owe the finance company immediately after the 18th payment? (c) How much of the first payment is interest? (d) How much of the 19th payment is interest?

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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Similar questions

Hh.56.
On January 1, Yumati Electric borrows $700,000 at an interest rate of 6% today and will repay this amount by making 14 semiannual payments beginning May 31. What is the approximate amount of each payments that Yumati will need to make? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.)
The Johnson Family borrowed $3,000 for 18 months at 4% interest. What is the total payback on the Single Payment loan(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}?
Red Lizard Construction just borrowed $53,600.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthly loan payment is $600.00, then what is the EAR of the loan? A rate less than 10.44% or a rate greater than 14.72% A rate equal to or greater than 12.43% but less than 13.86% A rate equal to or greater than 10.44% but less than 11.06% A rate equal to or greater than 11.06% but less than 12.43% A rate equal to or greater than 13.86% but less than 14.72% 100
The annual interest rate on a credit card is 17.99%. If a payment of $400.00 is made each month, how many months will it take to pay off an unpaid balance of $2584.16? Assume that no new purchases are made with the credit card. (Don't Hand writing in solution) .
A radio commercial for a loan company states: "You only pay 36¢ a day for each $500 borrowed." If you borrow $2,710 for 162 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.) a. Amount you repay=$(Round to two decimal places.) ID
Yoo, Incorporated, has arranged a line of credit that allows it to borrow up to $51 million at any time. The interest rate is 627 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a noninterest-bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $27 million for 8 months, how much will it pay in interest? Multiple Choice $1.307,50417 $1,457,29019 $1619,200.22 $1.230.592.16) $1,384,41618
12. A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would a borrower receive if she asked for a $5,000 loan? (b) What size of the loan should the borrower ask for in order to actually receive $5,000? (c) What is the equivalent simple interest that is being charged on the loan?
You just borrowed $15,000 from a finance company to start a business. If you are required to repay $16,800 interest and principal in one year, what is the nominal interest rate that the finance company is charging? If inflation is 2.5%, what is the expected real rate of interest?
A payday loan is structured to obscure the true interest rate you are paying. For example, you pay a $15 "fee" for a two-week $180 payday loan (when you repay the loan in two weeks, you pay $180+$15). What is the effective annual interest rate for this loan? Assume 26 bi-weekly periods per year. Enter your answer as a decimal, rounded to 4 decimal places. Your Answer:
The Patel Company has several financial issues to solve. As the company’s Financial Analyst you have been asked to answer the following 2 questions: Their bank will lend them $100,000 for 90 days at a cost of $1,200 interest. What is the company’s effective annual rate? A major supplier has granted credit terms of 1/10 N120. Assuming the company can borrow any amount of money at the rate you have calculated above (in part 1), should the company take the discount? (Your answer must be supported with a calculation of the cost of not taking the discount – using either simple or effective annual rate)
A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs. a. What amount of interest would the customer pay for a $440 overdraft? (Assume the interest is for the full amount borrowed for a whole year.) b. How much would be saved by using the overdraft protection loan if a customer has five overdraft charges of $45 each during the year?

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