Mike wants to buy a scooter that costs 10000, but he cannot afford to buy it cash. He opts for the hire purchase agreement, which requires a 13% deposit and 24 equal monthly instalments at an interest rate of 15% per annum, compounded monthly. How much will his deposit be? Calculate the total amount that he still must pay after the deposit. Calculate the monthly instalments

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: An employee is earning P 18,000 a month and he can only afford to purchase a car which will require…

A: Maximum amount of EMI that the employee can afford is 30% of his earnings i.e. 30% x P18,000 =…

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

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Q: Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside…

A: The is based on the calculation of mortgage loan and value of property as per eligibility of loan .…

Q: Your birthday is next week and instead of other presents, your parents promised to give you $2,400…

A: The concept of time value of money will be used here.As per the concept of time value of money any…

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on…

A: in this we have to calculate total interest to be paid and total principal and then monthly payment.

Q: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Chris decides to take out a loan for $60, 000 for 6 years at 5% monthly. If he pays an extra $200…

A: Here,LoanAmount is $60,000Time Period is 6 yearsInterest Rate is 5%Compounding Period is Monthly i.e…

Q: You are deciding to buy a car to commute to work given the comparatively low interest of 6% per…

A: A loan is a debt arrangement that provides financial assistance to a person to full fill a specific…

Q: Toni Torres wants to save $1,300 in the next two years to use as a down payment on a new car. If her…

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Tian can afford to put a down payment of $10,000 on a car. He can also afford to make monthly…

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

Q: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13%…

A: 1)weekly Payment to be made  Solved using Financial Calculator  PV = 28,250 N = 8 years * 52 weeks =…

Q: Aaron is planning to buy an apartment. He earn a monthly income of RM40,000 and plans to put aside…

A: Using excel PV function to calculate the loan amount he can afford to have.

Q: Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most…

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Q: Khiel wants to buy a car that costs $10,000, plus an extra 13% HST for a total price of $11,300. The…

A: Solved using Financial Calculator  1) Monthly payment to be made Pv = 11,300 N = 8 Years * 52 weeks…

Q: Jack borrows $28,163 to pay for a car. The loan carries an annual rate of 5.7% and he wants to be…

A: ANSWER: Interest on loan = $6,021.6163328  (or) $6,022 EXPLANATION:- Present Value (PV) = $28,163…

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

A: A sinking fund is a type of fund that is set up by an organization or company to accumulate money…

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

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

Q: Barbie is going to borrow $5,000 to help write a book.  The loan is for one year and the money can…

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan…

Q: Derek would like to save for a down payment on the purchase of a new SUV in 24 months. The targeted…

A: Down payment = $15,000Monthly interest rate = 0.875%Number of months = 24 months

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low…

A: Given Information, Payment made after 3 years =$18,000 Interest rate =0.0375/2=0.01875(As the period…

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A: Given information,Loan amount: Interest rate: Payment per period: Total years: To calculate,Amount…

Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation as follows: Therefore, the payment amount and total interests are $286.18 per month and…

Q: Crispin wants to buy a motorcycle. His mother will loan him some money at only 6% compounded…

A: Given, The rate is 6% compounded quarterly. Amount to be repaid is P3600 in 2 years

Q: Lena Horn bought a Toyota Tundra on January 1 for $30,800 with an estimated life of 6 years. The…

A: a. Depreciation per annum = ( Cost - Salvage value) / Useful life

Q: Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not…

A: Simple discount refers to the method of calculation of the amount received and interest paid where…

Q: at minimum down payment must Asher make to keep his monthly payment at or below $500? und your…

A: Monthly payment of loan includes the payment of principal and interest payment that goes on changing…

Q: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13%…

A: Solution:-  When a loan is taken, it can either be repaid as a lump sum payment or in instalments.…

Q: Will has a 30-year mortgage on a $100,000 loan for his house in Florida. The interest rate on the…

A: Mortgage is long-term amortized loan contract which used to but fixed assets, generally home.…

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Adam  who works for apple, buys a car in boston with a full price of $858,000. Adam will pay 10% of…

A: The time value of money concept is important in many areas of finance, such as investing, borrowing,…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Chris wants to buy a new motorcycle which costs $13,500. He wants his monthly payments to be $300.00…

A: Where loan repayment is there and we need to find out down payment , then present value formula will…

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: A mortgage is a loan that is taken out with the intent to purchase a property. The property in…