You are considering buying 2024 BMW M340i xDrive Sedanfor $61945 for a 5-year term at an annual rate of 5.25%.Calculate monthly payment fora variety of principal balancesfrom $52,000 to $70,000 (in$2000 increments) and for avariety of terms ranging from 3years to 6 years.

The loan amount is :The aim is to determine the monthly Payment

Answered: You are considering buying 2024 BMW…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose you have a student loan of $50,000 with an APR of 12% for 40 years. Complete parts (a) through (c) below. a. What are your required monthly payments? b. Suppose you would like to pay the loan off in 15 years instead of 30. What monthly payments will you need to make? c. Compare the total amount you'll pay over the loan term if you pay the loan off in 15 years versus 30 years.
Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you think that the present value of your car is $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept?
You want to buy a $12,000 car. The company is offering a 3% interest rate for 48 months (4 years). What will your monthly payments be?
You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 9.00% APR (monthly). You are considering making an extra payment of $200 today (i.e., you will pay an extra $200 that you are not required to pay). If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? What effective rate of retum (expressed as an APR with monthly compounding) have you eamed on the $200? (Note: Be careful not to round any intermediate steps less than six decimal places.) If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? The final payment is $ (Round to the nearest cent.)
You are considering buying a home with an asking price of $300,000. Since the market is hot, you plan to put in an offer for the full asking price. You also plan to put $60,000 down and finance the remainder. Your bank offers you a 30-year loan at 7.5% APR (compounded monthly). Assume your first payment is made one month from today. Calculate your monthly loan payment. (Round to 2 decimals)
The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at a rate of 4.2% per year compounded monthly. What monthly payment will the individual be required to make if the car is financed over a period of 48 months? What will the individual pay in interest charges over the period of 48 months?
If you could solve Option 2 with formulas that would be great! Option 2: Borrow $5,000,000 from a bank quoted an annual interest rate of 3.8%, do monthly payments during the payback period of 6 years. Find periodic and annual payments, also cumulative interest and cumulative principal.
Borrower Joe has an existing loan that requires 15 more years of monthly payments of $1,040. He is considering refinancing the loan balance of $117.095.08 with a new loan at the current market rate of 5.675% for 15-year loans. Both the old loan and the new loan require 2 points plus $500 in origination fees. What is the NPV of the refinancing decision at an opportunity rate of 5.675%?
Suppose you borrow $20,000 at the start of 2022 to buy a car. Your loan is for 4 years at an effective rate of 0.5% per month. Your first uniform monthly payment to pay back the loan is due at the end of January 2022. Please answer the following questions: a. What is your uniform monthly payment if you pay it off over 48 months? b. What is the remaining balance of your car loan immediately after making the 36th monthly payment at the end of year 3? c. Suppose instead you send the bank a check for $550 every month. Rounding off to the nearest number of months, how many months are required to pay off the loan by paying $550 each month assuming that the bank applies the proper portion of each payment to interest or principle at 0.5% per month? Display equations used.
Suppose you have a student loan of $45,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
you are analyzing a GPM. the terms are $60,000 loan amount, 9% note rate, 30 years, monthly payments, OFV, payments in year one based based upon 7%, and payment in year two based on 8%. how much will you owe on this loan at the end of the second year? Please assist, using HP 10bII+.
When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%

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You are considering buying 2024 BMW M340i xDrive Sedan for $61945 for a 5-year term at an annual rate of 5.25%. Calculate monthly payment for a variety of principal balances from $52,000 to $70,000 (in $2000 increments) and for a variety of terms ranging from 3 years to 6 years.