ou buy items costing $ 3200 and will finance the cost with a fixed installment loan. You will finance at 4 % simple interest per year. You are told that your interest will amount to $320. a. How many years will you be paying? b. What will be your monthly payment

ou buy items costing $ 3200 and will finance the cost with a fixed installment loan. You will finance at 4 % simple interest per year. You are told that your interest will amount to $320. a. How many years will you be paying? b. What will be your monthly payment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You have purchased a house and take out a $600,000 loan with a 30 year term at 5% nominal annual…

A: Information Provided: Loan amount = $600,000 Year = 30 Interest rate = 5% compounded monthly

Q: Consider borrowing $250,000 to purchase a house at a 4% annual interest rate to be paid in full in…

A: The debt amortization schedule refers to the table that showcases the interest and principal…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: e you take out a margin loan for $77,000. You pay an effective rate of 7.0 percent. If you repay the…

A: Each and every loan attracts interest and interest is the amount paid above the loan. Interest…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5% The time duration of the loan = 30 years

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be…

A: Here, Value of House is $6,000,000 Down Payment is $1,000,000 Therefore, Loan Amount (PV) is:…

Q: You are going to buy a home, and will be taking out a home loan for $275,000. The loan will be a…

A: Amount of home loan is $275,000 Time period is 30 years Interest rate is 7.9% compounded monthly To…

Q: Suppose you have $2,100 and plan to purchase a 10-year certificate of deposit (CD) that pays 13.1%…

A: Value when the CD matures = 2100 x (1 + 0.131)^10 = $7191.93

Q: You borrow $175,000; the annual loan payments are $10,120.27 for 30 years. What interest rate are…

A: Interest on a loan is the additional amount of money that a borrower has to pay back to the lender…

Q: Suppose you are buying your first condo for $280,000, and you will make a $15,000 down payment. You…

A: The objective of this question is to calculate the monthly mortgage payment for a condo purchase.…

Q: Assume you graduate from university with a $24,000 student loan. If your interest rate is fixed at…

A: Families of students and students often take student loan. This is taken for the purpose of…

Q: Suppose you are buying your first condo for $240,000, and you will make a $15,000 down payment. You…

A: Monthly payment refers to the fixed amount of money that is due each month as part of a loan or…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest : It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: a. How much is the monthly amortization? b. How much is the total interest?

A: Answer:

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: 19. You borrow $1,500,000 to purchase a small apartment building. The lender charges you a 2%…

A: Present value of annuity Annuity is a series of equal payment at equal interval. With annuity (PMT),…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 27000 at the time…

A: Compound = monthly = 12 Present value = pv = $27,000 Interest rate = 8 / 12% Time = t = 10 * 12 =…

Q: Suppose you are buying your first condo for $300,000, and you will make a $15,000 down payment. You…

A: The objective of this question is to calculate the monthly mortgage payment for a condo purchase.…

Q: A shady individual has approached you for a loan. He promises to pay you $500 at the end of five…

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

Q: You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Suppose you have a student loan of $50,000 with an APR of 6% for 30 years. a. What are your…

A: Here,Loan Amount is $50,000APR is 6%Time Period is 30 years

Q: 6. You purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down…

A: Monthly Mortgage Payments Monthly mortgage payment is the repayment of a mortgage loan by paying…

Q: 6) You buy a $400,000 house. The loan is for 25 years and is at 4.5% monthly. What is the monthly…

A: Loan is a contract between lender & borrower where lender provides funds to borrower for…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: Given information: Purchase amount = $20,000 Down payment = $2,000 Loan Amount = $20,000 - $2,000 =…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: mortgage value = n = 30 x 12 = 360

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: A) Annual mortgage payment is to be calculated as given below: The result of the above table is:…

Q: aks.1

A: The objective of the question is to calculate the down payment, loan principal and monthly loan…

Q: Suppose that you have good credit and can get a 30-year mortage for $100,000 at 5%. What is your…

A: A mortgage is a loan made usually for a property in which the collateral is the property itself.

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: Mortgage period = 30 yearsPurchase price = $2,700,000Mortgage amount = 80% of purchase priceMonthly…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: A loan is a facility provided by a lender to the borrower under which the borrower can take a lump…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 9% interest. The monthly payments on this…

A: We need to used NPER function in excel

Q: You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment and…

A: A mortgage loan is a loan provided by a bank or lending institution to a borrower for the purpose of…

Q: Suppose you take out a 30 year mortgage for $ 200000 at 7.75% interest. The monthly payments on this…

A: Time period with the new monthly payments and given loan amount and interest rate is calculated by…

Q: a. How much is the monthly loan repayment amount? b. If you double your loan repayment each month…

A: The amount borrowed from any financial institution or an individual is known as loan. Borrower needs…

Q: You want to buy a $15,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…

Q: Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a…

A: Formulas that are used:-

Q: What is the total amount you will have to repay for your $19,000 student loan if the interest rate…

A: 1. Calculating the Monthly Interest RateThe annual interest rate is 5%. To find the monthly interest…

Question

18.

You buy items costing $ 3200 and will finance the cost with a fixed installment loan. You

will finance at 4 % simple interest per year. You are told that your interest will amount

to $320.

How many years will you be paying?

What will be your monthly payment

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this loan are $ 1730.06. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving = If you put $ 1730.06 per month into an annuity earning 10.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?Extra savings =
Suppose you borrow $1million to purchase a house. The bank offers you the fixed borrowing rate 4% APR compounded semi-annually for a 5-year term. You decide on making semi-monthly payments (every half-month) with an amortization period of 30 years. How much do you still owe at the end of the 5-year term? The answer is within $50 of the following value.
Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 34000 at the time you start repayment, the interest rate is 7.5% APR, and you elect the standard repayment plan of a fixed amount each month for 10 years. What is your monthly repayment? Repayment amount = How much will you pay in interest?Interest paid =
The purchase price of an item is $15,000. You decide to buy it using an installment plan. You put 20% down. You agree to pay $275 per month for 5 years. a.) what is the amount of your down payment? b.) how much are you borrowing? c.) how much will you pay in interest? d.)how much will this item cost you in total?
Assume you graduate from university with a $20,000 student loan. If your interest rate is fixed at 4.55% APR with monthly compounding and you will repay the loan over a 20-year period, what will be your monthly payment? The monthly payment will be $ (Round to two decimal places.)
Suppose that your unsubsidized Stafford loans plus accumulated interest total $22000 at the time you start repayment, the interest rate is 9%APR, and you elect the standard repayment plan of a fixed amount each month for 10 years. What is your monthly repayment? How much will you pay in interest?
9) You buy a house for $200,000. The mortgage company offers a 30 year loan with an annual interest rate of 8% (but the loan requires monthly payments and the interest will compound monthly). What will be your monthly house payment?
3.
C) What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first payment is received 10 years from now and the last payment is received 25 years from now?You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 6%, how much will you have in 15 years?What would your monthly car payment be if you financed a $35,000 car for 3 years at a rate of 6%?The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. What is the present value of the cash flows? Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000
Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this loan are $ 1348.99. If you pay an extra 20% per month on your mortgage, how soon will you pay off the loan?
4. Today you purchase a previously owned Tesla Model 3 for $40,000. You take out a 0.25% per month loan for the full amount to be repaid using 48 equal monthly payments. The first payment is due one month from today. How much of your second monthly payment is interest and how much is principal? You'll need to compute the monthly payment first.
Consider borrowing $250,000 to purchase a house at a 4% annual interest rate to be paid infull in 15 years. Build a fixed payment monthly amortization schedule for the above loan.What is the total amount of interest you will pay on the loan.