The present value price of a car you would like to purchase today is $17,990. You are approved for a 60 month (5-year) loan at 3.5% compounded monthly with no money down What is your monthly car payment? Roundyour answer to the nearest cent (i.e. 2 decimal places)

Q: Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000…

A: Car Value = $ 26,635Down payment =$ 7000Loan Amount = Car Value - Down paymentLoan Amount = $ 26,635…

Q: You can afford a $250 per month car payment. You've found a 3 year loan at 3.6% annual interest…

A: We know that to calculate the EMI we can use the formula as below, Equated Monthly Installment =…

Q: Baghiben

A: The objective of this question is to calculate the monthly payment for a car loan. The loan amount…

Q: You want to buy a new sports coupe for $81,500, and the finance office at the dealership has quoted…

A: i= 0.0525 (6.3%/12) n = 60

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Monthly Loan Payment = PV*(r*(1+r)n)((1+r)n-1)  where: PV is the present value of the loan r is the…

Q: you want to buy a car for $8300 with $360 monthly payments for 4 years, what is the annual interest…

A: Interest rate is the rate which the customer would have to pay on the periodic payment of the…

Q: You recently graduated from Miami University and are looking to purchase a new vehicle. The car…

A: Monthly Payment:A "monthly payment" refers to a recurring amount of money that is paid on a monthly…

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: You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: You have two monthly car payments of $400 each left on your car. If the interest rate is 0.75…

A: Monthly Payment (PMT) = $400Monthly interest rate (r) = 0.75% or 0.0075Number of periods (n) = 2…

Q: You are interested in buying a new car. The sticker price is $38, 616.00 and you have $3,434.00 to…

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

Q: You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing…

A: Present value refers to whether money received in the current period or today is worth more than…

Q: In shopping for a new-to-me car, I would like to keep my monthly payment at or below $250. With an…

A: To determine the maximum loan amount you can afford with a monthly payment of $250 at an annual…

Q: If you want to buy a car, and you can afford a monthly payment of $425, how large of a loan can you…

A: Using excel PV function to get the loan amount

Q: You want to buy a new sports coupe for $75,200, and the finance office at the dealership has quoted…

A: Loan is a financial obligation that is repayable in the future. A loan is repayable according to the…

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The cash price or the purchase price will be the current worth of all the payments made on a monthly…

Q: You purchase a home for $434,000 by making a down payment of 15% and financing the remaining amount…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property, which itself…

Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…

A: The amount that can be borrowed should equal the present value of future payments. This is based on…

Q: What is the total interest paid to the nearest cent if the car costs $36,915, your down payment is…

A: A credit score is a metric which shows the ability of a person or an organisation to repay its debt…

Q: Use the Buying a Car information above to answer this question. The rebate offer is $1400, and you…

A: When a mortgage is to be had at a reduced quantity it's far referred to as a rebate offer. Under…

Q: How much do you still owe on your auto loan if you have 47 remaining monthly payments of $543 with…

A: Compound = Monthly = 12Number of Payment = n = 47Monthly Payment = p = $543Interest Rate = r = 6.9 /…

Q: You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted…

A: Compound = n = Monthly = 12Present Value = pv = $77,500Interest rate = r = 5.9 / 12Time = t = 48

Q: You can afford a $300 per month car payment. You've found a 5 year loan at 7% interest. How big of a…

A: The question is based on the concept of repayment of loan at fixed interval and regular payment .the…

Q: You take out a 5-year car loan for $16000 at a 6% interest rate. Calculate the fixed monthly payment…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: The present value price of a car you would like to purchase today is $17,990. . You are approved…

A: Ordinary annuity are the payments which are made at the end of the period.

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Monthly loan payment can be calculated by using excel function of PMT-Excel function of PMT…

Q: After making the thirtieth payment of $582.48 on your car loan, you wanted to find out how much is…

A: Amortization: Process of reducing loan balance in a systematic manner is called amortization.…

Q: The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n )…

A: The finance of the loan is dependent on certain factors like, loan amount, rate of loan, compounding…

Q: You take out a 5-year car loan with monthly payments of $425. The interest rate for the loan is…

A: To calculate the total interest paid over the life of a loan, we need to determine the total amount…

Q: You are looking to buy a car. You can afford $460 in monthly payments for four years. In addition to…

A: APR = 7.25% or 0.0725Monthly rate (r) = 0.0725 / 12 = 0.00604166666Monthly payment (PMT) =…

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: You wish to buy a car at a cost of $45,000. Ford Credit will finance the car at 3.9%/year over 48…

A: The two proposals can be made indifferent if their present worth will be same after offering the…

Q: You want to buy a new sports coupe for $75,400, and the finance office at the dealership has quoted…

A: The idea of figuring out a loan's monthly payment and effective annual rate (EAR) is the foundation…

Q: A Chevrolet Sonic Hatchback costs $ 14,980.00. With a 9 %  down payment, you can have an amortized…

A: Down payment- While purchasing a asset, the payment which is made upfront is called down payment.…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.