You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,250. You negotiate a six-ye with no money down and no monthly payments during the first year. After the first year, you will pay $1,475 per month for th five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with month compounding is 4.2 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to 2 decim Amount of balloon payment

You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,250. You negotiate a six-ye with no money down and no monthly payments during the first year. After the first year, you will pay $1,475 per month for th five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with month compounding is 4.2 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to 2 decim Amount of balloon payment

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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You have just purchased a car and taken out a $50,000 loan. The loan has a five-year term with monthly payments and an APR of 6.0%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years from now)? (Note: Be careful not to round any intermediate steps less than six decimal places.) a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) During the first month, you will pay $ in principal. (Round to the nearest cent.)
You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with a 3% interest rate for 36 months (3 years). What will your monthly payment be? My monthly payment will be $______
You want to buy a car and will need a loan of $22011. This will be a 36 -month loan. If the annual interest rate is 3%, what will be your monthly payment
You are purchasing a home for $ 395,000. The loan requires a down payment of 15% of the purchase price. There are no other fees. The rest will be borrowed through a 7.35% (CIA ) amortized loan with annual payments for 20 years. What will the annual payment be on the loan?
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 can afford a loan payment of $1200 a month. You have put an offer of $175,000 on a house. You are considering three different loans. Loan A. P = $175,000 at a rate of 5% with monthly payments for 30 years. Loan B. P = $175,000 at a rate of 4% with monthly payments for 15 years. Loan C. P = $175,000 at a rate of 4.5% with monthly payments for 20 years. Find the payment and total interest for each loan. Loan A: Payment = Total Interest = Loan B: Payment = Total Interest = Loan C: Payment = Total Interest =
You are going to purchase a new pick-up truck and decided to take a conventional vehicle loan in the amount of $60,175. You plan to finance the entire amount from a local bank. You plan to obtain a loan for 6 years and you were told the interest rate is 4.5% per year. Determine the monthly payments that you would make for the loan.
You have decided to buy a car this year at a price of $18,000. You're planning to take out a loan for the full price of the vehicle at an interest rate of .5% per month. For the first two years (24 months), you decide to repay $600 per month. How much will you have to pay each month for the remainder of the three-year loan (12 months remain) to exactly pay off the car in full at the end of the three-year term? Hint: Consider the monthly interest rate, the number of periods in months, and the monthly cash flows. $433 $500 $443 $600 O $419
4. Today you purchase a previously owned Tesla Model 3 for $40,000. You take out a 0.25% per month loan for the full amount to be repaid using 48 equal monthly payments. The first payment is due one month from today. How much of your second monthly payment is interest and how much is principal? You'll need to compute the monthly payment first.
You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the price to $38,000. You have $3,000 to put towards the down payment and plan to get a loan for the rest. If you can get an annual interest rate of 11 percent APR (with monthly compounding) over a 5-year period, what would be your monthly payment? Round it to two decimal place (cents), e.g., 234.56.
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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.

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