Ordinary annuity of a fire truck that cost 480,000 but with the help of the town you can save 4,500 a month with an annual interest rate of 9.3%  how many months will it take to pay for the truck?

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay…

A: Future value refers to the compounding the future cash flows with the interest rate compounding for…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $518,000 home…

A: When we take a loan we usually make fixed periodic payments toward servicing the loan. The fixed…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

Q: You've just bought a new flat - screen TV for and the store you bought it from offers to let you…

A: Number of payments can be calculated using NPER function in excel =NPER(rate,pmt,pv,[fv],[type])…

Q: our HVAC service provider says your home air/heating unit should be replaced in three years; the…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: We take loans to buy large ticket items like a car or a house. The loan is then repaid through…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Cost of home $                                      509,000Down payment20%Down payment509000*20%Down…

Q: You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%.…

A: Periodic deposit, A = $3,000  Interest rate, r = 8.5%  Period, n = 30 years    The future value of…

Q: You are trying to save up for a downpayment on a home and you need $55, 000 to cover closing costs…

A: Future value=$55000Monthly payment=$975 Interest rate=7.65%Monthly rate=7.65/12= 0.6375Future value=…

Q: Nikul

A: The objective of this question is to calculate the total cost of the loan including the principal,…

Q: (Annuity number of periods) You've just bought a new flat-screen TV for $3,600 and the store you…

A: Annuity refers to the sum of amount paid or received being compounded at a given rate of interest…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Loan amount = Amount of home * (1-Down payment %) = 501000*(1-20%) =400800

Q: Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new…

A: PV of annuity = P*{1-{1/[(1+r)^n]}/r} Where, PV of annuity = cost of new equipment i.e. $22,000 r =…

Q: Cooley Landscaping needs to borrow $25000 for a new front-end dirt loader. The bank is willing to…

A: For Annual Payments,Rate of interestAnnual (r) = 8% or 0.08Number of Period  = 6  = $5407.88(Using a…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $501,000 home…

A: Loan amount (P) = $400,800 (i.e. $501,000 * 0.80)Monthly interest rate (r) = 0.00483333333333333…

Q: A state lotto has a prize that pays $600 each week for 15 years. Find the total value of the prize:…

A: Total value of the prize = Price each week * Number of weeks * Number of years

Q: A state lotto has a prize that pays $1,000 each week for 30 years. Find the total value of the…

A: Annuity is a series of periodic equal payments at equal interval. With periodic interest rate (r),…

Q: A state lotto has a prize that pays $1,700 each week for 15 years. Find the total value of the…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Suppose you buy a car for $18,400 and finance it at 8%. Determine the monthly payment and total cost…

A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Q: You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

Q: How to compute Equivalent Annual Annuity on financial calculator: The old combine is good for 2…

A: Equivalent annual annuity (EAA) is an approach which is used to select best alternative between two…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: monthly paymen

A: Monthly payment refers to the equivalent amount that is paid every month for the loan duration. The…

Q: much interest (to the nearest dollar) would be saved on the following loan if the home were financed…

A: In this we need to calculate monthly payments in both cases and find out the difference in interest.

Q: A new oven will save $120 per year in electricity expense. How much can we afford to pay for this…

A: The present value is a method of finding the profitability of a project by discounting its cash…

Q: The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can…

A: Given: Future value = $8,000 Monthly deposit = $200 Interest rate = 4%

Q: You have to buy a new copier. The cost of the copier is​ $2,075​, plus ​$410 per year in maintenance…

A:

Q: Nikul

A: The objective of this question is to calculate the total cost of the loan including the principal,…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: a.Future Value of annuity = $320,000 Period, n = 39 years Interest rate per period, r = 7% Using the…

Q: You borrowed $300,000 to build a home by taking out a 30 year loan that has an interest rate of 12%.…

A: Present Value = pv = $300,000Time = t = 30 YearsInterest Rate = r = 12%

Q: A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 %  down payment, you can have an amortized…

A: Down payment- While purchasing a asset, the payment which is made upfront is called down payment.…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.