In December last year you bought a car on credit for 3 years in monthly instalments of $330,000 each. years in monthly instalments of $330,000 each, paying the first instalment in January of this year. instalment in January of this year, and you are considering paying by the end of October the entire balance due. What amount will you have to pay to become debt free? pay to be debt free? The annual interest rate is 1.5%.

In December last year you bought a car on credit for 3 years in monthly instalments of $330,000 each. years in monthly instalments of $330,000 each, paying the first instalment in January of this year. instalment in January of this year, and you are considering paying by the end of October the entire balance due. What amount will you have to pay to become debt free? pay to be debt free? The annual interest rate is 1.5%.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

See similar textbooks

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You borrow $500,000 from a bank to buy a $600,000 building. You amortize the loan (annually) over 25 years and are able to negotiate a 6% interest rate if you pay 2 discount points to the lender at the time of closing of the loan. What is your loan balance the end of the third year?
b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank you
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
you borrowed $1,000 from a bank with 12% annual interest rate. You want to pay off the debt in 4 years by paying equal amount of money each year. How much equal amount of money do you need to pay each year? Check your answer with interest table which calculate the increase/decrease of each year
In order to buy a car, you borrow $22,500 from a friend at 10%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. d. Three and one-half years after borrowing the money, you decide to pay off the loan. You have not yet made the payment due at that time. What is the payoff amount for the loan?
You borrow $364000 for the the purchase of a house at an APR of 7.52% for 15 years. Your monthly payment is $3378.46. How much money will you pay in interest for this loan?
Starting next year, you will need $5,000 annually for 4years to complete your education. (One year from today you will withdraw the first $5,000.)Your uncle deposits an amount today in a bank paying 6% annual interest, which will providethe needed $5,000 payments.a. How large must the deposit be?b. How much will be in the account immediately after you make the first withdrawal?
You are planning to borrow $500,000 on a 20-year fully amortized mortgage. The interest rate is 8% compounded semi-annually. You choose the monthly payment. a. What is the effective monthly rate for calculating the monthly payment? b. What is your monthly payment? c. How much will you owe the bank in the end of the 5th year. d. What fraction of the payment made at the end of the 12th year will represent repayment of principal?
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. o. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
In order to buy a car, you borrow $25,000 from a friend at 12%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. Solve, a. How much are the monthly payments? b. How much interest is in the 23rd payment? c. What is the remaining balance after the 37th payment? d. Three and one-half years after borrowing the money, you decide to pay off the loan. You have not yet made the payment due at that time. What is the payoff amount for the loan?
You purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule. What are the periodic annual payment required for the mortgage? What are the interest payment for the first year? What is the first year principal repayment What is the balance owed at the end of the first year? What are the interest paid on the principal repayment for the second year ? What is the balance owed at the end of the second year ? Why did the interest paid on the principal repayment change in the second year?