You can lease a vehicle today for 36 months. The dealer will guarantee a residual value of $10,000. If the cash price of the car is $38,000, and the financing is priced at 8.75%, what would be your monthly payment?

Q: You are ready to buy a house and you have $75,000 for a down payment and closing costs. Closing…

A: Here, Amount for Down Payment and Closing Cost is $75,000 Closing Cost id 4.5% of Loan Value Annual…

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: You are at a dealership considering the purchase of a car that would cost $34,000 if paid for in…

A: We shall use Excel's =NPER formula to calculate the total payments that would be required under the…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…

A: Balloon payment is the final payment made at the end of loan to close and settle the loan and close…

Q: A Chevrolet Sonic Hatchback costs $14,375.00. With a 7% down payment, you can have an amortized loan…

A: Initial cost of car = $14,375 Down payment = initial cost of car * 7% = 14,375 * 0.07 = $1006.25…

Q: What monthly payment will be required for the individual to make if the car is financed over a…

A: Compound interest is the amount of interest paid on interest which will grow the interest on loans…

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: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: We need to use present value formula below to calculate amount required today in account.PV…

Q: You can afford monthly payments of $400 per month. If you are financing a car at 10% APR and 60…

A: A car loan is a type of personal loan specifically designed for purchasing an automobile. Borrowers…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,…

A: To find the balloon payment for the Tesla Model X SUV:- Calculate the monthly interest rate using…

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 new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…

A:

Q: Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal…

A: Loan is a value which is taken from external sources like banks and this amount is repaid in fixed…

Q: You want to buy a car. The loan amount will be $29,000. The company is offering a 4% interest rate…

A: Annuity is a series of equal periodic payments for a specified period.With periodic rate (r), period…

Q: You want to buy a car for $25000 that has to be paid in 5 years. If the car dealer agrees to finance…

A: Working note:

Q: You want to buy a $27,000 car. The company is offering a 4% interest rate for 48 months (4 years).…

A: EMI is defined as an amount payable for each and every month to the bank or the financial…

Q: You want to buy a new sports coupe for $132,500, and the finance office at the dealership has quoted…

A: The effective annual rate is the effective interest rate applicable on the loan after taking into…

Q: Skyler would like to buy their first car and the one they have their eye on is $25,000, plus an…

A: Loan amortization refers to the regular and systematic repayment of loan and interest amount. Each…

Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow…

A:

Q: You plan to buy a $300,000 home with a 20% down payment. The bank suggests two options: a 15-year…

A: Introduction: Mortgage: A mortgage is a loan from a bank or a mortgage lender that helps a person to…

Q: You want to buy a $15,000 car. The company offering a 3% interest rate for 60 months (5 years). What…

A: To calculate the monthly payment we will use the below formula   Monthly payment = PV/[1-(1+r)-n]/r…

Q: You would like to purchase a car that costs $47000 at 7% APR for 3 years. What is your monthly…

A: Cost (PV) = $47000 Interest rate = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period…

Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

Q: A buyer is considering purchasing a 10-acre parcel in Peoria, Arizona for economic development. The…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You are considering purchasing a new automobile with the upfront cost of $26,000 or leasing it from…

A: Present value = pv = $26,000 Compound = Monthly = 12 Interest rate = r = 2.80 / 12 % Time = t = 5 *…

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: You want to buy a $20,000 car. The company is offering a 2% interest rate for 60 months (5 years).…

A: Variables in the question:PV=Loan amount=$20000Rate=2%N=5 years

Q: You want to buy a $26,000 car. The company is offering a 2% interest rate for 36 months (3 years).…

A: Monthly payments are the periodic amounts that a loan borrower has to make on a regular basis in…

Q: You have to buy a new copier. The cost of the copier is​ $2,075​, plus ​$410 per year in maintenance…

A:

Q: You want to buy a $29,000 car. The company is offering a 2% interest rate for 48 months (4 years).…

A: The monthly payment for an amortized loan can be determined using either a formula or the Excel…

Q: A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate…

A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: finance your new SUV with an auto loan of $38,000. This loan will b d compounding) at a 4% annual…

A: Auto loan=$38000Monthly interest rate=r=0.33%Period 3 years=36 months

Q: You want to but a $27,000 car. The company is offering a 3% interest rate for 60 months (5years).…

A: You want to but a $27,000 car. The company is offering a 3% interest rate for 60 months (5years).…

Q: You want to buy a new sports coupe for $75,300, and the finance office at the dealership has quoted…

A: The annual Percentage Rate shorts name is APR. It is a uniform means of quantifying the annual real…

Q: The present value price of a car you would like to purchase today is $17,990. You are approved for a…

A: In this question one has to solve the monthly payment. Monthly payment can either be found out by…

Q: Suppose you can afford $500 monthly payments and you will be able to pay $9000 as a balloon payment…

A: Balloon payments refer to the lump sum amount that is to be paid at the end of the period of the…

Q: You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then…

A: Present value of annuity is computed as follows:-PV = A * wherePV = Present value of annuityA =…

Q: consider purchasing a car that has a price of $18,700. You make payments for 6 years at an APR of…

A: A loan is a sum of money that is borrowed from a lender, with the agreement to repay the principal…

Q: You want to buy a $20,000 car. The company is offering a 4% interest rate for 48 months (4 years).…

A: A Loan amortization is the process of determining the monthly payments of the loan with interest and…

Q: A Chevrolet Sonic Hatchback costs $14,640.00. With a 9%​ down payment, you can have an amortized…

A: Initial cost of car = $14,640Down payment = initial cost of car * 9% = 14,640 * 0.09 = $…

Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: Future value refers to the accumulated amount in the fund account by compounding of the amount at…

Q: fter deciding to buy a new car, you can either lease the car or purchase it on a three- ear loan.…

A: Lease is a way to get the asset for a fixed time period by paying periodicals payments to other…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.