The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n )  7. If you want to buy a car that costs $16,000 with a loan at 3% APR how many years should you finance the car if you want your payment to be below $230? Do this problem any way you want, but clearly communicate your thinking.

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A:

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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…

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Q: Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you…

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Q: Suppose you want to buy a car. You have surveyed the dealers' newspaper advertisements, and the one…

A: the question is based on calculation of amortized loan . The loan will be repaid in equal…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Divu fiance

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A: Interest rate= 7.10%Amount per Installment= $695No. of Installments = 3Additional amount paid =$1100

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Q: You want to buy a $182,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: A= 182,0000t= 30 yearsDown Payment = 20%

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Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a…

A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000

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.