Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 6.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment.

Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 6.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 27M

See similar textbooks

Similar questions

Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4800 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 4.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment. Click the icon to view the partial APR table. a) Landon's finance charge is $ (Round to the nearest cent as needed.) Partial APR Table Number of payments 36 48 60 Annual Percentage Rate 5.5% 5.0% 6.0% 4.5% (Finance charge per $100 of amount financed) 7.90 7.09 9.52 8.71 11.63 12.73 9.46 10.54 11.86 13.23 14.61 16.00 Print Done 6.5% 10.34 13.83 17.40
Need help please
Asher wants to buy a car that costs $29,660. He qualifies for a 4-year loan at a 2.8% annual interest rate, and he can afford a $500 monthly payment. What minimum down payment must Asher make to keep his monthly payment at or below $500? Round your answer to the nearest dollar. $6,980 $20,325 $22,680 $9,336
Rich buys a car for $34,000 and has two options for financing. The dealership offers either financing of 0 % compounded monthly for 5-years, or a $5,000 cash rebate. If Rich takes the rebate, then he will apply the rebate to the cost of the car and finance the remaining balance with a loan for 5-years at 2.5% compounded monthly through the Tiger's Credit Union. (a) What would Rich's monthly payment be if he takes the 5-year 0% financing? Monthly payment for 5-year 0% financing= (Note: Your answer should include a dollar sign and be accurate to two decimal places) (b) What would Rich's monthly payment be if he takes the $5,000 rebate? Monthly payment with $5,000 rebate = (Note: Your answer should include a dollar sign and be accurate to two decimal places) (c) Which of the two options is financially better for Rich? Enter either "1" (for Option 1) if the 0% financing is better or enter "2" (for Option 2) if the $5,000 rebate is better. (Do not include the quotation marks in your…
Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and he uses the discount method. If borrows $40,000 at 9% for 48 months, how much is his monthly payment?
Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?
John is considering purchasing a new car from Slimy's Sports Car Emporium. The car costs $25,000, and John has a down payment of $5,000. Slimy is offering John a 5-year loan with an interest rate of 5.5% / yr compounded monthly. To encourage John to make the purchase, Slimy offers to throw in free floor mats, a lifetime car wax, and "VIN number" (vehicle identification number) window etching. The monthly loan payment is $412.02. Based on the purchase price, down payment, and interest rate, what should the loan payment be?
I need more assistance with this sub-part to the question please.
A retired couple buys a new recreational vehicle (RV) for $42,000.00. They make a down payment of $13,000.00 and finance the balance at 9.0% APR over 60 months. Their monthly payment is $601.99. Instead of making the 12th payment, the couple decides to pay the remaining balance on the loan. Use the actuarial method to determine how much interest the couple will save. 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. O $4,650.28 O $4,705.06 $5,620.19 $6,814.22
Steven wants to buy a new couch priced at $591 and agrees to pay for it over two years with a finance charge of 4.3% simple annual interest. How much will his monthly payment be? State your answer in terms of dollars rounded to the nearest cent (hundredth). Carl purchased a $385 car stereo at Worst Buy. He paid $25 at the time of purchase and agreed to pay the balance in 12 equal monthly payments. The finance charge was 14% simple annual interest. What was the amount of each payment? State your answer in terms of dollars rounded to the nearest cent (hundredth). Sammy wants to buy a new stereo priced at $449. He enters into an agreement to pay $21 a month for 24 months. How much will the finance charge be for this purchase?
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $185,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,300 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $4,300? Yes, under these conditions, Chuck will meet his goal. No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) try to negotiate a higher interest rate make a higher down payment make a lower down payment try to bargain for a higher sale price try to negotiate a lower interest rate try to bargain for lower sale price (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.85% loan if Chuck can pay 20% down. What will Chuck's…
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $185,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,300 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ 4257.64 × Can he pay off the loan and keep his payments under $4,300? Yes, under these conditions, Chuck will meet his goal. No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) □ □ □ □ □ make a lower down payment try to bargain for a lower sale price make a higher down payment try to negotiate a higher interest rate try to bargain for a higher sale price try to negotiate a lower interest rate