Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-yearloan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain.Which loan best meets the person's needs?(Round to the nearest cent as needed.)OA. The third loan best meets the person's needs because the monthly payment of $OB. The second loan best meets the person's needs because the monthly payment of $OC. The first loan best meets the person's needs because the monthly payment of $OD. None of the loans meet the person's needs.is less than the maximum budgeted amount of $300 per month.is less than the maximum budgeted amount of $300 per month.is less than the maximum budgeted amount of $300 monthper

The cost of borrowing money each year, including fees, is stated as an annual percentage rate (APR).…

Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. COD Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The third loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. OB. The second loan best meets the person's needs because the monthly payment of $ OC. The first loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. is less than the maximum budgeted amount of $300 per month.

Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. COD Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The third loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. OB. The second loan best meets the person's needs because the monthly payment of $ OC. The first loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. is less than the maximum budgeted amount of $300 per month.

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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You wish to buy a car at a cost of $45,000. Ford Credit will finance the car at 3.9%/year over 48 months OR you can receive a rebate of $1,500 and finance through your credit union at 9.7%/year over 48 months. How should you finance your car and what are your monthly payments? How much of a rebate would Ford have to give to make you indifferent to the financing? Round final answers to 2 decimal places. Show your work in detail for full credit. 27043 16:2206 26-01-201 301-4022- 050-4372
Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could use the add-on method to calculate different borrowing options. Calculate the finance charge and monthly payment for the following 7%, 4 Years: Finance Charge
9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
Yuli plans to purchase a vehicle, and she is working with two bank offers. . Bank One Loan Offer: $73,800, 6% annual interest, 60 months. . Bank Two Loan Offer: $73,800, 3% annual interest, 84 months. Yuli's ultimate financial goal is to select the loan with the lowest monthly payment regardless of duration. Based on her financial goal, which loan will Yuli choose? O A. Bank One: Loan Offer O B. Bank Two: Loan Offer OC. Both monthly payments are the same. O D. Not enough information given to answer the question.
Please answer C and D.
You have agreed to loan some money to a friend at a simple interest rate of 62% your friend needs a $1470 loan you tell him to pay you back $3200.When should you tell him to pay you back if you want to hold that interest rate of 62%?
Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a bank. If the amount of bank discount is 354.15, find the amount of the loan.
Apply 11. Jarvis is buying a boat that costs $6,000. He has $500 for a down payment. He is deciding between a 2-year loan and a 3-year loan. Use the rates in the table to determine how much Simple Interest Rate () Time (years) 1 1.5 money he will save if he chooses the 2-year loan instead of the 3-year loan. Round to the nearest cent. 2.25 3 3.0 2.
Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% PA [¹-(1+] Use PMT= -nt7 to complete parts (a) through (c) below. a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.)
Use an online loan calculator to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $148,000. The bank requires a 20% down payment and three points at the time of closing The cost of the home is financed with a 30-year fixed rate mortgage at 85% Complete parts (a) through (e) below -CHEDD a. Find the required down payment $0 b. Find the amount of the mortgage How much must be paid for the three points at closing? (Round to the nearest dolar as needed) d. Find the monthly payment (excluding escrowed taxes and insurance) (Round to the nearest dollar as needed) e. Find the total cost of interest over 30 years (Round to the nearest dolar as needed)

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