Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number of 4.0% 4.5% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69. (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)
Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number of 4.0% 4.5% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69. (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)
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
Transcribed Image Text:Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and
receives $11,000, which she uses as a down payment. She finances the balance at
4.5% APR over 36 months. Before making her 6th payment, she decides to pay off
the loan. Answer parts a) through d) below.
Number
Annual Percentage Rate
of
4.0%
4.5%
5.0%
5.5%
Payments
(Finance charge per $100 of amount financed)
30
5.25
5.92
6.59
7.26
36
6.29
7.09
7.90
8.71
48
8.38
9.46
10.54
11.63
a) Use the given table to determine the total interest Nina would pay if all 36 payments were made.
Nina would pay $ 1488.90 in interest.
(Round to the nearest cent as needed.)
b) What were Nina's monthly payments?
Nina's monthly payments were $ 624.69
(Round to the nearest cent as needed.)
c) How much interest will Nina save by paying off the loan early?
Nina will save $ 1047.44
(Round to the nearest cent as needed.)
d) What is the total amount due to pay off the loan?
The payoff amount is $
(Round to the nearest cent as needed.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education