Rachel purchased a car for $20,000 three years ago using a 4-year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Minimum price

Rachel purchased a car for $20,000 three years ago using a 4-year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Minimum price

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

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Similar questions

Jasmin has found a car she wants to buy. The used-car dealer says she can buy it for $298.62 per month for 48 months. If the interest rate on the loan is 9.0% APR, how much does the car cost? In other words, what is the present value of the loan payments?
Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each quarter in an account paying 5.3% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? $ (Do not round until the final answer. Then round to the nearest cent as needed.)
Mike and Jenny purchase a house for a selling price of 310,000 and need to make a 15% down payment. The remainder of the mortgage amount will be aromatized over 25 years at a rate of 3.5%/annually.Assume they will never refinance and will pay it off in the full 25 years. a)How much money will they need to borrow from the bank? b)What are their monthly payments? c)How much do they pay in total for their mortgage? d)If they could only afford to make payments of 1,200,how much would they have left to pay off their mortgage after 25 years? Please answer all subparts. I will really upvote. Thanks
Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a 30 year loan at 3.85% interest for the balance.a) How much is the loan amount going to be?b) What will the monthly payment be for Manuel and Aponi?c) How much of the first payment is interest?d) What is the total of the payments?e) How much interest was paid?
Vickie decides to sell her current home and move to a larger home. She estimates that she can sell her current home for $2,000,000 and can buy a larger home for 6,000,000. She plans to use the entire $2,000,000 sale proceeds as a down payment on the new home and will finance the remainder for 10 years at 6% nominal annual interest compounded monthly. What is her estimated monthly mortgage payment? Christine wants to be able to purchase a dream car for about $50,000 on January 1, 2028, just after she graduates from graduate school. She has a full-time job and started making deposits of $730 each month into an account that pays 6% compounded monthly beginning with the first deposit on February 1, 2023. The last deposit is to be made on January 1, 2028. Determine how much money she would have saved to buy the car. Will she be able to buy her dream car?
Four years ago, Emily secured a bank loan of $200000 to help finance the purchase ofan apartment in Boston. The term of the mortgage is 30 years, and the interest rate is9.5% per year compounded monthly. Because the interest rate for a conventional 30years’ home mortgage has now dropped to 6.75% per year compounded monthly,Emily is thinking of refinancing her property.a) What is Emily’s current monthly mortgage payment?b) What is Emily’s current outstanding principal?c) If Emily decides to refinance her property by securing a 30 years’ home mortgageloan in the amount of the current outstanding principal at the prevailing interestrate of 6.75% per year compounded monthly, what will be her monthly mortgagepayment?d) How much less would Emily’s monthly mortgage payment be if she refinances?
Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan (plus simple interest) is repayable in 6 years. What is the total amount that must be repaid? Round your answer to the nearest dollar and do not round until the final answer. Provide your answer below:
Sarah negotiated a price of $24,800.00 for a new Toyota Camry Hybrid Sedan. She is prepared to give a down payment of 15%. Her credit union offered her a 5-year amortized loan for the remaining amount at a rate of 2.25%. How much money will be paid in interest? What will the monthly payment be? How much will the car cost, in total? If she got a simple interest loan at the same interest rate and time, how much would she pay in interest? $
Ms. Towne is buying a home for $250,000 and is putting down 20 percent cash on the purchase. She is financing the rest with a 30-year, fixed-rate mortgage with a rate of 5 percent but is considering an option that would allow her to make biweekly payments. How long would it take to pay off the loan if she chooses the biweekly payments option?
When Sara Jean purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The mortgage has a fixed interest rate of 6% compounded monthly. (a) Compute Sara Jean’s monthly mortgage payments. (b) If Sarah Jean wants to pay off her mortgage today, for how much should she write a check? She made her most recent mortgage payment earlier today.
Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of the car from her bank at 6 percent interest rate. The loan requires monthly payments for a period of five years. If the first payment is due in one month after purchasing the car, what will be the amount of Wilma’s monthly payment on the loan?
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?

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