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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Assume you bought a car using a loan that requires payments of $3,000 to be made at the end of every yearfor the next three years. The loan agreement indicatesthe annual interest rate is 6 percent. Which table in thisappendix would you use to calculate the car’s equivalentcost if you were to pay for it in full today?a. Table C.1 (Future Value of $1)b. Table C.2 (Present Value of $1)c. Table C.3 (Future Value of Annuity of $1)d. Table C.4 (Present Value of Annuity of $1)
Suppose you purchase an automobile for a selling price of $1,600,000. You make a down payment of 5% of the selling price and finance the remaining balance for 4 years at an annual interest rate of 5%. The sales tax is 7.5% of the selling price, and the license fee is 0.8% of the selling price. Find the monthly payment.
You borrow $22541 to buy a car. You will have to repay this loan by making equal monthly payments for 14 years. The bank quoted an APR of 6%. How much is your monthly payment (in $ dollars)? I'm not sure how the answer is 198.6394, Can you explain that to me on the financial calculator, please? Thank you :)
You plan to purchase a $160,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.75 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 20th payment c. Calculate the amount of interest and, separately, principal paid in the 150th payment d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Monthly payment b. Amount of interest Amount of principal C. Amount of interest Amount of principal d. Amount of interest paid Amount
You wish to buy a $20, 500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only?
A student buys a car from a dealer for $43,000 with no down payment. He pays for the car in 48 equal monthly payments with interest at 5% per annum, compounded monthly. What is his monthly loan payment?
You buy a used car for $6,000, taxes included. The dealership offers financing at 6% annual interest, compounded monthly, over 4 years. If your down payment is $1,000, determine your monthly payments.
Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
Jason Stein from Topeka, Kansas, borrows $1,500 (including interest) for four years (48 months) at an interest rate of 7% per year. The loan uses the discount method for determining the amount of interest. How much of the loan amount ($1,500) consists of interest? How much of the loan is actually given directly to Jason? What is the monthly payment (rounded to the nearest penny), assuming 48 monthly payments?
A new car is purchased for $22,000 with a 10% down, 6% loan. The loan is for 4 years. After making 30 monthly payments, the owner wants to pay off the loan’s remaining balance. How much is owed?
A person borrowed some money and agreed to pay off the loan by making monthly payments of $75 for three years; the first payment is in one month. The interest rate on the loan is 9%. Find the amount that the person borrowed.
Tim Houston purchased a wall unit for $2,300. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)

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