Jennifer Kaufman bought a used Toyota Prius for $17,500. She made a $2,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)
Jennifer Kaufman bought a used Toyota Prius for $17,500. She made a $2,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)
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
Related questions
Question
Solve by using tables Table 12-1 and Table 12-2.
Jennifer Kaufman bought a used Toyota Prius for $17,500. She made a $2,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)
Transcribed Image Text:TABLE 12 -1
Future Value (Amount) of an Ordinary Annuity of $1 (Continued)
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1
2.09000
2.10000
2.11000
2.12000
2.13000
2.14000
2.15000
2.16000
2.17000
2.18000
2
3.27810
3.31000
3.34210
3.37440
3.40690
3.43960
3.47250
3.50560
3.53890
3.57240
3
4
4.57313
4.64100
4.70973
4.77933
4.84980
4.92114
4.99338
5.06650
5.14051
5.21543
4
5.98471
6.10510
6.22780
6.35285
6.48027
6.61010
6.74238
6.87714
7.01440
7.15421
6.
7.52333
7.71561
7.91286
8.11519
8.32271
8.53552
8.75374
8.97748
9.20685
9.44197
6.
7
9.20043
9.48717
9.78327
10.08901 10.40466 10.73049
11.06680
11.41387
11.77201
12.14152
7
8.
11.02847 11.43589 11.85943 12.29969 12.75726 13.23276
13.72682
14.24009
14.77325
15.32700
13.02104 13.57948 14.16397 14.77566 15.41571
16.08535
16.78584
17.51851
18.28471
19.08585
9.
10
15.19293 15.93742 16.72201 17.54874 18.41975 19.33730
20.30372
21.32147
22.39311
23.52131 10
11
17.56029 18.53117 19.56143 20.65458 21.81432 23.04452 24.34928
25.73290
27.19994
28.75514 11
12
20.14072 21.38428 22.71319 24.13313 25.65018 27.27075
29.00167
30.85017
32.82393
34.93107 12
13
22.95338 24.52271 26.21164 28.02911 29.98470 32.08865
34.35192
36.78620
39.40399
42.21866 13
14
26.01919 27.97498 30.09492 32.39260 34.88271 37.58107
40.50471
43.67199
47.10267
50.81802 14
15
29.36092 31.77248 34.40536 37.27971 40.41746 43.84241
47.58041
51.65951
56.11013
60.96527 15
16
33.00340 35.94973 39.18995 42.75328 46.67173 50.98035
55.71747
60.92503
66.64885
72.93901 16
17
36.97370 40.54470 44.50084 48.88367 53.73906 59.11760
65.07509
71.67303
78.97915
87.06804 17
18
41.30134 45.59917 50.39594 55.74971 61.72514 68.39407
75.83636
84.14072
93.40561 103.74028 18
19
46.01846 51.15909 56.93949 63.43968 70.74941 78.96923
88.21181
98.60323
110.28456 123.41353 19
20
51.16012 57.27500 64.20283 72.05244 80.94683 91.02493 102.44358 115.37975
130.03294 146.62797 20
21
56.76453 64.00250 72.26514 81.69874 92.46992 104.76842 118.81012 134.84051
153.13854 174.02100 21
22
62.87334 71.40275 81.21431 92.50258 105.49101 120.43600 137.63164 157.41499
180.17209 206.34479 22
23
69.53194 79.54302 91.14788 104.60289 120.20484 138.29704 159.27638 183.60138 211.80134 244.48685 23
24
76.78981 88.49733 102.17415 118.15524 136.83147 158.65862 184.16784 213.97761
248.80757 289.49448 24
25
84.70090 98.34706 114.41331 133.33387 155.61956 181.87083 212.79302 249.21402 292.10486 342.60349 25
26
93.32398 109.18177 127.99877 150.33393 176.85010 208.33274 245.71197 290.08827 342.76268 405.27211 26
27
102.72313 121.09994 143.07864 169.37401 200.84061 238.49933 283.56877 337.50239 402.03234 479.22109 27
28
112.96822 134.20994 159.81729 190.69889 227.94989 272.88923 327.10408 392.50277 471.37783 566.48089 28
29
124.13536 148.63093 178.39719 214.58275 258.58338 312.09373 377.16969 456.30322 552.51207 669.44745 29
30
136.30754 164.49402 199.02088 241.33268 293.19922 356.78685 434.74515 530.31173 647.43912 790.94799 30
31
149.57522 181.94342 221.91317 271.29261 332.31511 407.73701 500.95692 616.16161
758.50377 934.31863 31
32
164.03699 201.13777 247.32362 304.84772 376.51608 465.82019 577.10046 715.74746 888.44941 1103.49598 32
33
179.80032 222.25154 275.52922 342.42945 426.46317 532.03501 664.66552 831.26706 1040.48581 1303.12526 33
34
196.98234 245.47670 306.83744 384.52098 482.90338 607.51991 765.36535 965.26979 1218.36839 1538.68781 34
35
215.71075 271.02437 341.58955 431.66350 546.68082 693.57270 881.17016 1120.71295 1426.49102 1816.65161 35
36
236.12472 299.12681 380.16441 484.46312 618.74933 791.67288 1014.34568 1301.02703 1669.99450 2144.64890 36
(1 + i)" – 1
and rounded to five decimal places, where i is the interest
The values in Table 12-1 were generated by the formula
rate per period and n is the total number of periods.
i
Transcribed Image Text:TABLE 12-2
Present Value (Amount) of an Ordinary Annuity of $1
Periods
1%
2
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
0.99502 0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
1
2
1.98510
1.97040
1.95588
1.94156
1.91347
1.88609
1.85941
1.83339
1.80802
1.78326
3
2.97025 2.94099
2.91220
2.88388
2.82861
2.77509
2.72325
2.67301
2.62432
2.57710
3
4
3.95050 3.90197
3.85438
3.80773
3.71710
3.62990
3.54595
3.46511
3.38721
3.31213
4
4.92587 4.85343
4.78264
4.71346
4.57971
4.45182
4.32948
4.21236
4.10020
3.99271
6.
5.89638 5.79548
5.69719
5.60143
5.41719
5.24214
5.07569
4.91732
4.76654
4.62288
6.
7
6.86207 6.72819
6.59821
6.47199
6.23028
6.00205
5.78637
5.58238
5.38929
5.20637
7
8
7.82296 7.65168
7.48593
7.32548
7.01969
6.73274
6.46321
6.20979
5.97130
5.74664
9.
8.77906 8.56602
8.36052
8.16224
7.78611
7.43533
7.10782
6.80169
6.51523
6.24689
9.
10
9.73041
9.47130
9.22218
8.98259
8.53020
8.11090
7.72173
7.36009
7.02358
6.71008
10
11
10.67703 10.36763 10.07112
9.78685
9.25262
8.76048
8.30641
7.88687
7.49867
7.13896
11
12
11.61893 11.25508 10.90751
10.57534
9.95400
9.38507
8.86325
8.38384
7.94269
7.53608
12
13
12.55615 12.13374 11.73153
11.34837
10.63496
9.98565
9.39357
8.85268
8.35765
7.90378
13
14
13.48871 13.00370
12.54338
12.10625
11.29607
10.56312
9.89864
9.29498
8.74547
8.24424
14
15
14.41662 13.86505 13.34323
12.84926 11.93794 11.11839 10.37966
9.71225
9.10791
8.55948
15
16
15.33993 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590
9.44665
8.85137
16
17
16.25863 15.56225 14.90765
14.29187 13.16612 12.16567 11.27407 10.47726
9.76322
9.12164
17
18
17.17277 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909
9.37189
18
19
18.08236 17.22601 16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560
9.60360
19
20
18.98742 18.04555 17.16864
16.35143
14.87747
13.59033 12.46221 11.46992 10.59401
9.81815
20
21
19.88798 18.85698 17.90014
17.01121
15.41502 14.02916 12.82115 11.76408 10.83553 10.01680
21
22
20.78406 19.66038 18.62082
17.65805
15.93692 14.45112 13.16300 12.04158 11.06124 10.20074
22
23
21.67568 20.45582 19.33086
18.29220
16.44361
14.85684 13.48857 12.30338 11.27219 10.37106
23
24
22.56287 21.24339 20.03041
18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876
24
25
23.44564 22.02316 20.71961
19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478
25
26
24.32402 22.79520 21.39863
20.12104 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998
26
27
25.19803 23.55961 22.06762 20.70690 18.32703 16.32959 14.64303 13.21053 11.98671 10.93516
27
28
26.06769 24.31644 22.72672 21.28127 18.76411
16.66306 14.89813 13.40616 12.13711 11.05108
28
29
26.93302 25.06579 23.37608 21.84438 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841
29
30
27.79405 25.80771 24.01584 22.39646
19.60044 17.29203 15.37245 13.76483 12.40904 11.25778
30
31
28.65080 26.54229 24.64615 22.93770 20.00043 17.58849 15.59281 13.92909 12.53181 11.34980
31
32
29.50328 27.26959 25.26714 23.46833 20.38877 17.87355 15.80268 14.08404 12.64656 11.43500
32
33
30.35153 27.98969 25.87895 23.98856 20.76579 18.14765 16.00255 14.23023 12.75379 11.51389
33
34
31.19555 28.70267 26.48173 24.49859 21.13184 18.41120 16.19290 14.36814 12.85401 11.58693
34
35
32.03537 29.40858 27.07559 24.99862 21.48722 18.66461
16.37419 14.49825 12.94767 11.65457
35
36
32.87102 30.10751 27.66068 25.48884 21.83225 18.90828 16.54685 14.62099 13.03521 11.71719
36
(1 + i)" – 1
The values in Table 12-2 were generated by the formula
rate per period and n is the total number of periods.
and rounded to five decimal places, where i is the interest
i(1 + i)"
TABLE 12-2
Present Value (Amount) of an Ordinary Annuity of $1 (Continued)
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
0.91743 0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
1
2
1.75911 1.73554
1.71252
1.69005
1.66810
1.64666
1.62571
1.60523
1.58521
1.56564
2
3
2.53129 2.48685
2.44371
2.40183
2.36115
2.32163
2.28323
2.24589
2.20958
2.17427
3
4
3.23972 3.16987
3.10245
3.03735
2.97447
2.91371
2.85498
2.79818
2.74324
2.69006
4
3.88965 3.79079
3.69590
3.60478
3.51723
3.43308
3.35216
3.27429
3.19935
3.12717
6.
4.48592 4.35526
4.23054
4.11141
3.99755
3.88867
3.78448
3.68474
3.58918
3.49760
6.
7
5.03295 4.86842
4.71220
4.56376
4.42261
4.28830
4.16042
4.03857
3.92238
3.81153
7
8
5.53482 5.33493
5.14612
4.96764
4.79877
4.63886
4.48732
4.34359
4.20716
4.07757
9.
5.99525 5.75902
5.53705
5.32825
5.13166
4.94637
4.77158
4.60654
4.45057
4.30302
10
6.41766 6.14457
5.88923
5.65022
5.42624
5.21612
5.01877
4.83323
4.65860
4.49409
10
11
6.80519 6.49506
6.20652
5.93770
5.68694
5.45273
5.23371
5.02864
4.83641
4.65601
11
12
7.16073 6.81369
6.49236
6.19437
5.91765
5.66029
5.42062
5.19711
4.98839
4.79322
12
13
7.48690 7.10336
6.74987
6.42355
6.12181
5.84236
5.58315
5.34233
5.11828
4.90951
13
14
7.78615 7.36669
6.98187
6.62817
6.30249
6.00207
5.72448
5.46753
5.22930
5.00806
14
15
8.06069 7.60608
7.19087
6.81086
6.46238
6.14217
5.84737
5.57546
5.32419
5.09158
15
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