Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of month 72). If the APR of this loan is 7.80%, what will be your monthly payments? $7,724 $7,643 $7,451 $7,323 $7,548

Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of month 72). If the APR of this loan is 7.80%, what will be your monthly payments? $7,724 $7,643 $7,451 $7,323 $7,548

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

See similar textbooks

Related questions

Q: You borrow $275,000; the annual loan payments are $36,687.93 for 30 years. What interest rate are…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

Q: A $50,000 interest only mortgage loan is made for 30 years at a nominal interest rate of 6 percent.…

A: Part (a): Answer: Monthly payments on loan $250 Calculation of daily accrued interest:

Q: Assume you graduate from university with a $37,000 student loan. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function.…

Q: A house costs $141,000. It is to be paid off in exactly ten years, with monthly payments of…

A: An amount of annual percentage which is charged from borrowers of the loan and paid to the…

Q: Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start…

A: Installment is the amount of periodic payments a borrower has to make in order to repay his loan in…

Q: Determine the monthly payment if you take out a loan for $ 330000 with an annual interest rate of…

A: in this we have to calculate present value FACTOR and than find out monthly payment.

Q: Using the simple interest method, find the monthly payments on a $2,000 installment loan if the…

A: Simple interest refers to the method of interest calculation where the principal amount remains the…

Q: You borrow $5,000 and have to pay $5,300 six months later. Calculate the effective annual rate of…

A: Interest Paid = $5300 -$5000 Interest Paid =$300 Interest Rate =$300/$5000 Interest Rate = 6%…

Q: You are considering taking out a loan of 20,000.00 that will be paid back over 7 years with monthly…

A: given information loan amount = 20,000 interest rate = 4.8% monthly interest rate = 0.004 no of…

Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…

A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.

Q: ou borrow $210,000; the annual loan payments are $18,653.76 for 30 years. What interest rate are you…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly…

A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest : It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: You have just taken out a $23,000 car loan with a 7% APR, compounded monthly. The loan is for five…

A: We buy expensive things and large ticket items like a house or a car etc. by taking loans from…

Q: You have a $200,000 loan at 4% interst over 20 years. You make the payment plus $250 at the end of…

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

Q: You are going to deposit $4100 in an account that pays 0.47 percent interest month. How much will…

A: Future value is the estimated value of a current asset through a discount rate for a future date.…

Q: You are considering taking out a loan of $11,000.00 that will be paid back over 10 years with…

A: Unpaid loan balance will be the present value of outstanding payments that are not yet paid based on…

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: You are considering taking out a loan of $6,000.00 that will be paid back over 10 years with…

A: We take loans when we are faced with a problem of financial or liquidity crunch. The loan is repaid…

Q: You purchased a house for $100,000 at an 8% APR. Your loan term is 360 months. If you make minimum…

A: Here, Particulars Values Loan Amount (PV) $ 100,000.00 APR 8.00% No. of months (NPER)…

Q: A worker is considering a loan of $97000 over 20 years at an interest rate of 7.9% p.a. with monthly…

A: The difficulty of distributing limited resources among numerous initiatives or investments is one…

Q: You have just taken out a $16,000 car loan with a 8% APR, compounded monthly. The loan is for five…

A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…

Q: how long will it take to pay off a loan of $45,000 at an annual rate of 11% compounded monthly if…

Q: You are to repay a loan of $3600.00 with 17 quarterly repayments of $240.00, with the first…

A: Given Loan = $3600 Number of payment = 17 PMT = $240 Interest rate = 7.8390% quarterly compounded…

Q: If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of…

A: Present worth is the value of the amount in current time which is expected to be paid or received in…

Q: Consider a student loan of $25,000 at a fixed AP a. Calculate the monthly payment. b. Determine the…

A: Loan amount = $25,000Interest rate = 9%Number of years = 30 years

Q: Suppose that you have borrowed $125,000 in the form of a 30-year loan with an annual interest rate…

A: A loan payment includes the interest as well as the principal amount of loan which has been obtained…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $35000 at the time you…

A: Loan amount is $35000 Interest rate is 9% Time period is 10 years To Find: Fixed Monthly repayment

Q: What is the monthly mortgage constant on a 30-year mortgage loan of $90,000 requiring payments of…

A: Here, we'll find loan, IRR for the year.

Q: Compute the monthly payment on a $65,000 loanif the principal and interest are to be repaid in 84…

A: a) Loan amount (PV) of $65,000 needs to be repaid in (n) 84 equal installments at an annual interest…

Q: A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…

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

Q: Consider a student loan of $25,000 at a fixed APR of 12% for 20 years. a. Calculate the monthly…

A: We need to use loan amortisation formula below to calculate monthly payment. PMT =P*i1-1(1+i)n…

Question

Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of
month 72). If the APR of this loan is 7.80%, what will be your monthly payments?
$7,724
$7,643
$7,451
$7,323
$7,548

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Let us first look at the information given in the question

VIEW

Step 2: First, we will calculate the monthly payment using formula

VIEW

Step 3: Now, we will calculate monthly payment using Excel

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment
A house costs $139,000. It is to be paid off in exactly ten years, with monthly payments of $1,599.62. What is the APR of this loan?
If you take out a loan for a new $20,000 car, a typical APR with a fair credit score is 4.8%. If you make monthly payments of A dollars, find an expression for your debt right after your first payment (remember that there is a difference between the APR and the monthly interest rate). *the first picture is my answer that is needed to answer the question (20000)(1.048') – A1.048* k=1 For any integer n > 1, and any r+ 1, it can be verified that п-1 pn 1 - r – 1 - k=0
You are considering taking out a loan of $17,000.00 that will be paid back over 5 years with monthly payments of $330.24. If the interest rate is 6.2% compounded monthly, what would the unpaid balance be immediately after the eleventh payment? The unpaid balance would be?
The terms of a loan call for monthly payments for 6 years at 9.6 percent interest. If you borrow $18,800 to purchase a new car, what is the amount of each payment?
What is the monthly loan payment on a 30 year, $250,000 loan at 5.25%, plus two points
Taking out a 21 year loan at $59,000 with 6% APR compounded monthly, and with monthly payments, calculate the amount of your second principal payment. Round your final answer to one decimal place.
A$66.000interest-only mortgage loan is made for 30 years at a nominal interest rate of 8 percent. Interest is to be accrued daily, but payments are to be made monthly. Assume 30 days each month. Required: a. What will the monthly payments be on such a loan? b. What will the loan balance be at the end of 30 years? c. What is the effective annual, rate on this loan?
You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly payment on the loan is $527.19. Assume that right after you make your 50th payment, the balance of the loan is $5,083.64. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount that goes towards interest is $. (Round to the nearest cent.) C
You borrow $50, 000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) in 12% per year. What is the monthly payment?
you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal installments at the end of each of the next 7 years. By how much would you reduce the amount you owe (that is, principal) at the end of the first year? (Hint: Compute annual loan payment first and then the loan amortization schedule for the first year.) Group of answer choices $5,798.23 $5,790.23 $5,792.23 $5,796.23 $5,794.23
How long will it take to pay off a loan of $47,000 at an annual rate of 8 percent compounded monthly if you make monthly payments of $650? Use five decimal places for the monthly percentage rate in your calculations. The number of years it takes to pay off the loan is enter your response here years. (Round to one decimal place.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS