Joe Clemente bought a stereo costing $1400 with $200 down and 10% add-on interest to be paid in 18 equal monthly installments. Find the following. (Round your answers to the nearest cent.) (a) the finance charge $ (b) the monthly payment $ (c) the interest refund if he pays off the loan after 12 months $ (d) the amount needed to pay off the loan. $

Joe Clemente bought a stereo costing $1400 with $200 down and 10% add-on interest to be paid in 18 equal monthly installments. Find the following. (Round your answers to the nearest cent.) (a) the finance charge $ (b) the monthly payment $ (c) the interest refund if he pays off the loan after 12 months $ (d) the amount needed to pay off the loan. $

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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Concept explainers

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.

Question

Joe Clemente bought a stereo costing $1400 with $200 down and 10% add-on interest to be paid in 18 equal monthly installments. Find
the following. (Round your answers to the nearest cent.)
(a) the finance charge
$
(b) the monthly payment
$
(c) the interest refund if he pays off the loan after 12 months
$
(d) the amount needed to pay off the loan
$

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Jennifer has a 60-month fixed installment loan, with a monthly payment of $223.04. The amount she borrowed was $11,000.00 at 8.0% APR. A split second after making her 36th payment, Jennifer decided to pay off the remaining balance on the loan. What is the total amount due to pay off the balance? Use the actuarial method. If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635, in your textbook to solve this problem, the result will match exactly with one of the answers. If you use a spreadsheet to do the computation, your result will not match exactly with any of the answers, but it will differ only very little (mostly less than $1) from the "correct" answer. $4,788.06 $4,897.69 $4,931.79 $5,063.35
A man borrows $60,000 to help pay for his college expenses. He intends to pay off the loan with regular monthly payments over the next 20 years. Find the monthly payment if he is being charged 4.7% interest per year, compounded monthly. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The monthly payment is Blank 1. Calculate the answer by read surrounding text. dollars.
Manjean is making car payments of $662 per month for the next 3 years. Manjean knows that the car loan has an interest rate of 11.5%, discounted monthly, what was the initial price of the car? Note: Final answer round to the nearest whole number. No need put UOM (unit of measure).
Would appreciate the help. 4
** HINT: Look online or look back at your worksheets for "add- on interest" problems! Melanie bought a used car for $10,000. (S)he put $100 down and financed the balance with the dealer at 5% add-on interest. If they agreed to make 36 monthly payments, then: (Round each answer to the nearest penny) What is the total payback amount of the loan? $ What is the amount of each payment? $ /month What is the total amount of interest paid on the loan? $
Mario is buying a new car for $18,500. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 5% down payment, 4.5% APR for 5 years 10% down payment, 3.5% APR for 4 years
Doug Black bought a jet ski with a 6% add-on interest installment loan from his credit union. The purchase price was $1,950. The credit union required a 15% down payment and equal monthly payments for 48 months. What are Doug's monthly payments (in $)? (Round your answer to the nearest cent.) $
Emily is buying a new car for $1,700. The dealer is charging her an annual interest rate of 10.2%. If she pays off the loan in 24 months, what are her monthly payments? If she makes a down payment of $210, how much will her monthly payments be? Round to two decimal places. OA. $170.57; $74.75 B. $170.57; $10.54 C. $85.28; $74.75 O D. $145.28; $10.54
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