To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is[$10,000 (0.1) (35) + $10,000]/35 = $385.71/month. If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

Q: You purchase an RV by making a down payment of $10,700. The terms of your finance agreement have an…

A: The down payment is $10,700 The annual interest rate is 2.66% compounded monthly The total number of…

Q: I need assistance to solve this problem: On September 1, 2018, you bought a car for $23,000. You…

A: Calculation of payoff the loan on November 1, 2020:First it is required to calculate the total…

Q: HAN ON

A: Downpayment amount=20/100*124000=24800    So Loanable value =12400-24800=99200 Given interest rate =…

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: A used car can be purchased for $15,200 with monthly payments spread over 4 years, the person has…

A: We need to find the total installment cost of the loan.

Q: You have credit card debt of $37,500 that has an APR (monthly compounding) of 15%. Each month you…

A: APR of old card = 15%APR of New Card = 12%Number of months in year = 12(i)Monthly Interest rate of…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

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: A small businessman is about to acquire a machine whose price is $ 15,000 with VAT included. If the…

A: A. Payment in cash Cash payment = $15000(1-15%) = $ 12750   B. Installment to pay on credit Initial…

Q: Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many…

A: Hello. Since your question has multiple sub-parts, we will solve first the three sub-parts for you.…

Q: Bowflex’s television ads say you can get a Treadclimber that sells for $10,000 for 4 annual payments…

A: Rate of return is the rate that an investor expects to receive annually as the reward for investing…

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 get a Department Store Credit Card with a Credit limit of $1000. You make a purchase totaling…

A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…

Q: You decide to buy a $ 1,500 piece of furniture at a local furniture store. The furniture store asks…

A: Annual rate (r) = 25% Number of compounding per year (m) = 12

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 24%, compounded…

A: Principal = $1,100APR = 24%Minimum monthly payment = $24.75

Q: marillo National Bank offers you a 60-month, 0.139 APR (monthly compounding) auto loan. If you…

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

Q: You have credit card debt of $30,000 that has an APR (monthly compounding) of 18%. Each month you…

A: Monthly Interest rate of old card=18%/12=1.5%Interest payment of old card per month=$30000*1.5%=…

Q: You have credit card debt of $30,000 that has an APR (monthly compounding) of 15%. Each month you…

A: In the realm of personal finance, credit cards play a significant role in managing expenditures and…

Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…

A: The financed car loan requires a 10% down payment, which is: $9500 x 10% = $950 So, the amount…

Q: Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The…

A: It is given that, the price of the car is $57,000 and the down payment is $10,000.So, the loan…

Q: You have asked Raider Bank for a $20,000 signature loan, where you will be charged 1% per month…

A: It seems there might be a mistake or some missing information in this question. Let me clarify a few…

Q: You are planning to buy an used car from a local dealer. The list price of the car is $12,000. If…

A: List Price of Car = $12,000Down Payment = $5,500Cash cost of car = $11,000Bank Interest rate =…

Q: a) You currently owe $25,000 on a credit card with a 16% interest rate and a minimum payment of $25…

A: a. Using the credit card calculator at fincalc website, we can determine the time required to pay…

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: S Cars Just sold you a clunker (you need it to get to class on time). You financed the $4,728.48…

A: Loan amount = $4,728.48Monthly payment = $250Number of months = 24  months

Q: Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off…

A: Balance amount=$4100 Interest rate=15% Time period=3 years 3 years monthly payment=$142.13 3 years…

Q: Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a…

A: Following formula will be used to calculate the present value:

Q: 39. You want to purchase an automobile for $27,300. The dealer offers you 0% financing for 60 months…

A: 0% Financing from the Dealer: With this option, the car dealer offers to finance your purchase at a…

Q: can select one of the following loans, each requiring regular monthly payments:   Installment Loan…

A: To calculate the monthly payments and total interest for each loan, we can use the following formula…

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 have $5,000 on a credit card that charges a 19% interest rate. If you want to pay off the credit…

A: To calculate the monthly payment we will use the below formula   Monthly payment =…

Q: A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: The difference in monthly payments between the two offers is $ (Round to the nearest cent as…

A: Monthly payments refer to the fixed amount that a borrower is required to repay on a loan each…

Q: you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: What is the simple interest rate ?

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: You wish to buy a $20,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are…

A: The borrower can pay interest at regular intervals or at the time of making payment. The payment…

Q: You are purchasing a home for $340 The down payment is 25% and the bala will be financed with a…

A: Mortgage loans are very important for buying homes but there are many types of other payments to be…

Q: Bowflex’s television ads say you can get a Treadclimber that sells for $12,000 for 5 annual payments…

A: Present Value = pv = $12,000Number of Payment = nper = 5Payment = pmt = $3000

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.