You bought a used car for $4,000.00 at a nominal interest rate of 6%. You agreed to pay for the car in 12 equal monthly payments, beginning with the first payment at the time of the purchase of the car. b) Immediately after making the sixth payment, you made an arrangement with the company to pay back the rest of the loan with one single payment at the time when the seventh payment was due. What is your seventh payment?

You bought a used car for $4,000.00 at a nominal interest rate of 6%. You agreed to pay for the car in 12 equal monthly payments, beginning with the first payment at the time of the purchase of the car. b) Immediately after making the sixth payment, you made an arrangement with the company to pay back the rest of the loan with one single payment at the time when the seventh payment was due. What is your seventh 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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The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles. The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments, with a total of $140 in interest to be paid on the loan. Magic Pumpkin's bank has offered to finance the purchase with an instalment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the annual interest rates on these loans?
A car dealer will sell you a used car for $6798 with $798 down and payments of $162.51 per month for 47 month for 48 months. What is the simple interest rate ?
Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $4000.00 were made after four months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $5000.00. Six months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the balance by making payments of $145.00 every month for 30 months. What nominal rate of interest, compounded monthly, is charged? O A) 7.07% B) 6.60% O C) 5.50% D) 6.80%
For the car loan described, give the following information. A car dealer will sell you the $30,750 car of your dreams for $6,000 down and payments of $665.06 per month for 60 months. (a) amount to be paid $ 512.5 (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) 1.72 X % (d) APR (rounded to the nearest tenth of a percent) 20.7 X %
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $43.02 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.50 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
A contractor decided to borrow $7000 from a bank in order to buy an equipment for his company. The bank allows him pay back his loan in five years at a monthly interest rate of 2%. the farmer can pay $71 per month but can increase his monthly payment by a certain value in arithmetic way (G value). What should be the G value so that he finished the loan by the end of five years? O $ 243326.21 O $ 4531.98 O $ 3.00 O $ 5.50 O $ 9468.02
CAN U PLEASEE PLEASE PLEASE HELP ME WITH THISS 21. A bank recently loaned $18,204.00 to buy a car. The loan is for 4 years and is fully amortized. The nominal rate on the loan is 9.2%, and payments are made at the end of each month. What will be the remaining balance on the loan after you make payment number 35? 4,106.14 5,606.14 5,106.14 4,606.14 6,106.14
For the car loan described, give the following information. A car dealer will sell you the $30,350 car of your dreams for $6,000 down and payments of $669.06 per month for 60 months. (a) amount to be paid $ (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) % (d) APR (rounded to the nearest tenth of a percent)
A new engineering graduate who started a business borrowed money for 1 year. The amount of the loan was 23,800 JD, and it had an interest rate of 10% per year. However, the bank made him buy a loan insurance that cost 5% of the loan amount. In addition, the bank charged a loan setup fee of 300 JD. What was the effective interest rate paid?
A business projects get the following flows of cash: Year flows (in Thousands of colones) 1 ¢750.00 two ¢800.00 3 ¢700.00 4 ¢1,000.00 5 ¢975.00 6 ¢1,500.00 7 ¢2,000.00 Yes the rate of discount it is of twenty%, which it is the worth Present of these flows?
You purchase a new TV with a store credit card for $800. You have a year to pay off the TV, but interest accrues. The nominal rate is 12% compounded weekly. You pay back the full amount plus interest in one year, How much do you owe? O a. 866.51 O b. 832.59 O c. 901.87 O d. 896

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