Two years ago you purchased a new SUV for $50,000. You financed your SUV for 60 months at 6.15% APR (with payments made at the end of the month). You have just made your 24th monthly payment on your SUV. Assuming that you have made all of the first 24 payments on time, What is the outstanding principal balance (rounded to the nearest dollar) on your SUV loan?.

Q: (a) Find the monthly payment for this loan. Monthly Payment: $ (b) Find the balance of the loan…

A: Monthly payment refers to the amount which is to be paid at regular intervals for a particular…

Q: You are financing a car worth $29509.88 with tax included. Interest rates are 7.6% compounded daily.…

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

Q: you borrowed $1,000 from a bank with 12% annual interest rate. You want to pay off the debt in 4…

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

Q: Fifteen years ago a couple purchased a house for $180,000.00 by paying a 20% down payment and…

A: A mortgage is a covered loan that has been taken out to purchase real estate with the real estate…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: K Franklin's new snowmobile cost $13,000. After his down payment of $1,000, he financed the…

A: A loan is an agreement where one party provides the other party with an amount that is to be repaid…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: Payoff amount refers to the amount which is required to be paid as principal amount of the loan. The…

Q: You plan to buy a new car in three years and begin depositing $250 per month into a savings account…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: You borrow $560,000 to purchase a home. The loan rate is 8.95% and must be repaid in 27 years. What…

A: Compound = Monthly = 12Present Value of Payment = pv = $560,000Interest Rate = r = 8.95 / 12%Time =…

Q: After making twentieth payment of $582.17 on your car loan, you wanted to find out how much is left…

A: In this we need to calculate the present value of loan payment made and how much is balance payment.

Q: You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business.…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: You just invested $5,000 in a 48-month certificate of deposit (CD) at your local bank. The CD pays…

A: In this question we need to compute the worth of CD when it matures i.e. we need to compute its…

Q: 1. Jeremiah has 3 years to repay a $55000 personal loan at 6.55% per year, compounded monthly. a.…

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

Q: What is the unpaid balance on the $9000 loan you obtained five years ago with monthly payments and…

A: A loan refers to a contract between parties where money is exchanged on the promise of future…

Q: Alice borrowed $8,000 from her grandmother to buy The interest rate being charged is 4.5% compounded…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent,…

A: Compound = n = Monthly = 12Present Value = pv = $30,200Interest Rate = r = 8.2 / 12 %Monthly payment…

Q: ou just borrowed $490,000 for a mortgage on your new home. The mortgage has a 30​-year term with…

A: Mortgage loans make home buying home easy because paid by easy monthly payments that carry payment…

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Bank with an interest of 12% compounded annually. You can pay off the debt in 4 years by paying $310…

A: Present value:Present value is a financial concept that refers to the current worth of a future sum…

Q: After starting your full - time job out of college, you decide to buy a new car for $85,000. Create…

A: Car cost = $85,000Number of payments = 84Discount rate = 6.5%To find: Amount owed after the 75th…

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: a)Upon entering college, you purchase the car of your dreams for $26000. You pay $5200 down and…

A: Car value = $26,000Down payment = $5,200Finance value = $20,800Loan tenure = 4 years or 48…

Q: Acertain college graduate borrows 5707 dollars to buy a car. The lender charges interest at an…

A: This question is related to the loan. In which a graduate student borrows a loan from the bank. In…

Q: You borrowed $5,646 from a bank, which charges 7.8% interest per year. How much interest did you owe…

A: Principal amount (P)= $5,646 Interest rate (R)= 7.8% per year Time period (T)= 1 year

Q: Pick a discretionary expense that you incur on a regular basis, such as buying premium coffees…

A: Amount of the present cash flows when multiplied by the given interest rate (taking time value of…

Q: Your family recently bought a house. You have a $100,000, 30-year mortgage with a 6% nominal annual…

A: To calculate your monthly mortgage payment and how much of the first payment goes toward interest,…

Q: y a new car in three years and begin depositing $250 per month into a savings account that earns…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: ou loaned your brother a substantial amount of money and are working out a payment system. You’ve…

A: The Person loaned your brother a substantial amount of money and are working out a payments system.…

Q: William borrows $22,000 to buy a car. He will repay the loan through 4 years of equal monthly…

A: Variables in the question:Loan amount=$22000N=4 yearsRate=4.5%Working Note#1:nper=4 years x 12=48…

Q: Beginning three months from now, you want to be able to withdraw $2,500 each quarter from your bank…

A: Data given: pmt= $2500 (each quarter) n=4 years nper=4 years *4=16 rate=0.5% (per quarter)…

Q: If you have ATM fees each month of $8 for 4 years, what is the total cost of those banking fees?

A: A cost system is a system that is designed to evaluate the cost incurred by the company.

Q: b. You have a $20,000 note payable which is due in three years. How much money must you put into a…

A: Solution d: N = 1 PV (Future value of at the end of 3 years) = $20,000 Interest rate (I) = 3%

Q: Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at…

A: The outstanding balance on a loan is the total amount of money that is still owed to the lender.…

Q: You want to save for a new car so you make payments of $573 at the end of every month into the bank.…

A: Monthly Payment = mp = $573Annual Payment = ap = $1620Number of Monthly Payment = mn = 7 * 12 =…

Q: A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is…

A:

Q: 1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the…

A: Interest: It is the amount that is paid by the borrower to the lender for taking a loan. It is paid…

Q: You are planning to save to purchase a car in 23 years for $28,000. You have opened a bank account…

A: Annuity is a series of equal payments made for some particular period of time . When payment is made…

Q: monthly payments over 10 years at 5% APR interest compounded monthly, how much are your monthly…

A: Information Provided: Loan amount = $91,000 Term = 10 years Interest rate = 5% compounded monthly

Q: n June 1, you borrowed $350,000 to buy a house. The mortgage interest rate is 3.5%. The loan is to…

A: Mortgage loans are secured loans paid by equal monthly installments and these monthly payment carry…

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.