Number Annual Percentage Rate 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. of 4.0% 4.5% 5.0% 5.5% Payments 30 (Finance charge per $100 of amount financed) 5.92 5.25 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.)

Number Annual Percentage Rate 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. of 4.0% 4.5% 5.0% 5.5% Payments 30 (Finance charge per $100 of amount financed) 5.92 5.25 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.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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