(USING EXCEL FUNCTION PLEASE) You wish to plan your Bahamas Islands vacation. You estimate that it will be two years from now, and that it will cost $15,000. The monthly payment you should save in order to finance your vacation is $637.66 assuming that you make 24 monthly payments, starting today and ending 23 months from now. what is the annual percentage rate?

Q: You wish to purchase a home for $500,000. You will make payments of $30,000 at the end of every…

A: A sum borrowed to meet specific personal or business funding needs is recognized as a loan/mortgage.…

Q: Use the monthly payment formula to answer the question. Round your answer to two decimal places, if…

A: Purchase Price = $648,000Down Payment rate = 10%Compound = monthly = 12Interest rate = r = 7.92 / 12…

Q: .You a buying a home for $425,000 and would like to determine the monthly mortgage payment. You can…

A: The excel formula to calculate the monthly payment is - Monthly payment = PMT (Interest…

Q: You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: You purchase a new laptop for $1200 and put it on your credit card, which charges 14.99% interest.…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: After graduation, you decide that you can pay $203.24 per month extra on your student loan (…

A: The objective of this question is to determine how many years early you will be able to pay off your…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: Suppose you borrow $20,000 at the start of 2022 to buy a car. Your loan is for 4 years at an…

A: a. Calculate the monthly payments as follows: Therefore, the monthly payment is $469.70.

Q: You are purchasing a home for $150,000 at an 8% APR.  Your loan period is 360 months.  If your…

A: Given Cost of home is $150,000 APR is 8%Loan period is 360 Payment is $1,100.65

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: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

Q: You are buying a new home, and you have negotiated a 15-year mortgage loan with a local bank for an…

A: Annuity refers to the equal amount of payment made. In this case the monthly payments for loan…

Q: You borrow $21421 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Formula for calculating EMI: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] P = Loan amount  r=…

Q: Which of the following procedures does the text say is used most frequently by businesses when they…

A: Capital budgeting is the process that businesses use to make decisions about long-term investments…

Q: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…

A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment  PV - Loan amount i.e. $10,742 R…

Q: You've been offered a loan of $20000, which you will have to repay in 5 equal annual payments of…

A: Present Value = pv = $20,000Number of Payment = n = 5Payment = p = $6000

Q: You are considering two ways of financing a spring break vacation. You could put it on your credit…

A: Given: Particulars Rate Credit card rate 14.000% Interest rate 10.00%

Q: You are interested in saving for a trip when you graduate in three years. You can save $75 each of…

A: The future value refers to the value of all future cash flows at the future date compounded with the…

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've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…

A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…

Q: Assume you graduate from university with a ​$24,000 student loan. If your interest rate is fixed at…

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Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each.  What is the interest rate?

A: Annual payments are made for payment of loan which carry the interest and payment of principal…

Q: You are planning on buying a new house and want to make sure you can afford the monthly payments.…

A: Equal monthly payment refers to the stream of equal payment over the period when the whole loan gets…

Q: You have saved $26,273.00 for a three-year vacation to Germany. You will keep your money invested…

A: The amount being withdrawn each month is an annuity due as the withdrawals are being done at the…

Q: Suppose you want to have $7,876 for a vacation in the future. What will be the estimated total you…

A: future value formula: future value = present value ×1+rateyear future value of annuity…

Q: How much must you invest each month, for 5 months, starting next month

A: SOLUTION:- $6,163 needed per month for 8 months, starting 12 months from now. Interest rate =…

Q: You are considering two ways of financing a spring break vacation. You could put it on your credit…

A: Both interest rates given have different compounding frequencies. so, we simply can not compare both…

Q: You would like to purchase a car that costs $47000 at 7% APR for 3 years. What is your monthly…

A: Cost (PV) = $47000 Interest rate = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period…

Q: Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The…

A: Amount you can borrow = Present value of the maximum monthly paymentsNOTE :here the monthly payment…

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 would like to buy a house for $850,000. You put $180,000 down, and then get the rest at 7.5%,…

A:

Q: Assume you graduate from university with a $40,000 student loan. If your interest rate is fixed at…

A: The present value of monthly payments over a 20-year period should be equal to the amount of the…

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $5,500 for the…

A: To accumulate an amount over a time period, a person can make regular payments to the fund. The…

Q: You have just leased a car that has monthly payments of $390 for the next 3 years with the first…

A: For the calculation of the present value we will use the below formula.Present value =…

Q: What is the effective annual rate on the loan? (i.e., what is the interest rate once we take into…

A: Information Provided: Amount Borrowed = $400,000 Term = 30 years Fixed APR = 3.87%

Q: You plan to spend a semester abroad in France. You will live in France for 10 months starting 9…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: Give typing answer with explanation and conclusion you want to borrow $71,400 from your local bank…

A: The idea of the time value of money (TVM) holds that a quantity of currency is valuable currently…

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: Suppose that you borrow $17,000 for five years at 6% toward the purchase of a car. Find the monthly…

A: Answer :Principal = $17000 Rate = 6% = 6/1200 = 0.005 Time = 5 * 12 = 60 months Payment per month =…