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.

Q: You purchase a used sports utility vehicle costing $30,000 by taking out a 6% add-on installment…

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

Q: You can afford a $250 per month car payment. You've found a 3 year loan at 3.6% annual interest…

A: We know that to calculate the EMI we can use the formula as below, Equated Monthly Installment =…

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The idea of a time value of money (TVM) holds that a quantity of income is valuable greater now than…

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: After deciding to get a new car, you can either lease the car or purchase it with a three-year loan.…

A: A loan is a financial instrument that involves the lending of money by one or more individuals,…

Q: K Franklin's new snowmobile cost $13,000. After his down payment of $1,000, he financed the…

A: A loan is an agreement where one party provides the other party with an amount that is to be repaid…

Q: Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price and the dealership fee…

A: A loan refers to a contract between two parties where money is forwarded in exchange for a promise…

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: You want to buy a new car after your graduation. The price of the car is $20,000. The car dealer…

A: Monthly Payment  = P * r * [{(1+r)n }/{1+r)n -1}] where P = Prinicipal borrowed = Car price - down…

Q: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: You need a $6000 loan to buy a used car.  Your bank offers a 4-year loan at 9% APR. Calculate your…

A: We have to use the following formula of the monthly payment by using the following formula: Monthly…

Q: Doug Black bought a jet ski with a 8% add-on interest installment loan from his credit union. The…

A: PURCHASE PRICE = $1950 DOWNPAYMENT = 15% AMOUNT FINANCED = 1950 x (1-0.15) AMOUNT FINANCED = $…

Q: Arrowood's Camera Store advertises a Canon Power Shot 3.34-megapixel camera for $300, including…

A: Simple interest is calculated using following formula on the principal Simple…

Q: A used car can be purchased for $15,200 with monthly payments spread over 4 years, the person has…

A: We need to find the total installment cost of the loan.

Q: monthly payments for th

A: Monthly payment refers to the amount which is due and paid in regular intervals to an organization…

Q: Doug Black bought a jet ski with a 6% add-on interest installment loan from his credit union. The…

A: In the given question, total purchase price of Jet Ski is $ 1,950. However 15% down payment is made.…

Q: You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: a gets a 5 year, $10,000 car loan with montly payments at 6% APR.  What is the amount of his monthly…

A: Loans are to be paid by the monthly payments and these monthly payments carry the payment for…

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: You buy a new car for $22,222.  You must also pay tax and license fees of $1,570.  You borrow…

A: A sum borrowed to meet a specific expense or any goal is regarded as a loan. The lender generally…

Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12

Q: After starting your full - time job out of college, you decide to buy a new car for $85,000. Create…

A: Car cost = $85,000Number of payments = 84Discount rate = 6.5%To find: Amount owed after the 75th…

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

Q: Stan Slickum has a used car that can be bought for $8,500 cash or for a $2,000 down payment and $750…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…

A: The financed car loan requires a 10% down payment, which is: $9500 x 10% = $950 So, the amount…

Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…

A: The amount that can be borrowed should equal the present value of future payments. This is based on…

Q: ou have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an…

A: First we need to use loan amortization formula below to calculate loan amount.wherePV = loan…

Q: You want to buy a $12,000 car. The company is offering a 3.9% annual interest rate, compounded…

A: Monthly interest rate = Annual interest rate/Frequency of compounding in a year = 0.039/12 = 0.00325…

Q: You can afford to pay $560 each month for a new car. The dealership offers you a 5-year loan at 6.4%…

A: Given:M = $560 (the amount you can afford each month) r = 6.4% per year = 6.4/12 = 0.5333% per month…

Q: AMG Services offers to lend Scott Tucker $5,250 which he needs to repair his sports car.  AMG’s loan…

A: This question is related to the repayment schedule. Here a loan of $ 5250 at the annual 14.60%…

Q: To buy a car, you borrow $28,000 with a term of five years at an APR of 7%. What is your monthly…

A: Loan amount (PV) = $ 28,000 APR = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period =…

Q: uy a truck for $25,200.  You must also pay tax and license fees of $1,700.  You borrow $23,000 at 9%…

A: Vehicles are purchased on the basis of monthly payments and these monthly payments carry the payment…

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 =…

Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

A: The number of months to stay will be around 6 months.

Q: A metallurgist purchases a car for total cost including tax and license of $31,795.66. If the…

A: Compound = monthly = 12 Present value = pv = $31,795.66 Time = t = 4 * 12 = 48 month Interest rate =…

Q: Jorge is buying a new car for $24,750. Compare the two loan offers by finding the monthly payments…

A: Purchase Price of Car = 24750 Two loan options evaluated below

Q: A local car dealer offers a customer a 3-year car loan of $15,000 using “add-on” interest.The first…

A: Loan is a financial agreement between lender and borrower. Lender lends money to borrower in…

Q: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment

Q: You wish to buy a $20,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are…

A: The borrower can pay interest at regular intervals or at the time of making payment. The payment…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.