Rosie is buying a car for $25,500; She is Scheduled to make 7 annual instalments. Given an interest rate of 8%, what is the annual payment?

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

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

Q: Ashley bought a $1,500 sound system on the installment plan. She made a $300 down payment, and she…

A: A sound system has been bought on a down-payment and the balance on installment. The magnitude of…

Q: Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on…

A: in this we have to calculate total interest to be paid and total principal and then monthly payment.

Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

Q: An investor invests £6,000,000 in a new factory, which takes a year to build. After construction…

A: Net present value refers to the method used for estimating the profitability of the project during…

Q: Sarah graduated from college with $29000 in student loan debt. The annual rate on her loans is 6…

A: Calculate the total interest paid over 5 years:Total interest paid over 5 years = Principal *…

Q: Tian can afford to put a down payment of $10,000 on a car. He can also afford to make monthly…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…

A: Using excel PV function

Q: how many years will it take her to pay back the loan?

A: A person defers his or her current payment liability via loan. A loan is provided by a bank, who…

Q: lie has a credit card with an APR of 27.99% and a current balance of $9,325.65. She wants to pay it…

A: Given information : Annual percentage rate 27.99% Current balance $9,325.65 Time period…

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

A: A sinking fund is a type of fund that is set up by an organization or company to accumulate money…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a…

A: APR stands for Annual Percentage Rate. It is a standardized way of expressing the total cost of…

Q: 9. Aisha is looking for a $20,000 loan to buy a car. One financial institution has agreed to give…

A: Loan is a sum of amount borrowed from a lender. It is expected that the loan will be repaid at a…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation as follows: Therefore, the payment amount and total interests are $286.18 per month and…

Q: (Annuity payments) Prof. Finance is thinking about trading cars. She estimates she will still have…

A: Step 1:Step 2:Step 3: Step 4:

Q: Mary has saved enough money to make a $10,000 down payment on a $3 finance the purchase with an auto…

A: Monthly payment refers to an amount that is paid at every month for the repayment of loan amount…

Q: Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took…

A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest…

A: Loan amount = $300,000 Initial interest rate = 2.75% Initial payment = $1,224.72 After 5 years,…

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Jamie is going to buy furniture with a single-payment loan that is discounted. The loan will be for…

A: Step 1 APR The term annual percentage rate (APR) describes the annual interest rate you'll pay if…

Q: at minimum down payment must Asher make to keep his monthly payment at or below $500? und your…

A: Monthly payment of loan includes the payment of principal and interest payment that goes on changing…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

Q: offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage…

A: Information Provided: Home cost = $417,000 Down payment = $26,000 Interest rate = 5.83% Years = 30…

Q: Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Ingrid wants to buy a $16,000 car in 8 years. How much money must she deposit at the end of each…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Aidan wants to pay off the loan on his refrigerated trailer on which he has made 15 payments. If…

A: When a series of equal periodic payment is made against a loan, it is termed as annuity. This…

Q: Your parents are giving you $100 a month for four years while you are in college. At a 6% annual…

A: The objective of this question is to calculate the present value of a series of future payments,…

Q: If Sam can afford payments at $390 per month for 6years. what is the price of a car that she can…

A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

Q: Lauren knows she can afford to make monthly payments of $300 for 48 months.  How much will the bank…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

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.