You have saved $6,946 for a down payment on a new car. The monthly payment you can afford is $495. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.44% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $ Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments. Margin of error for correct responses: +/- .05

You have saved $6,946 for a down payment on a new car. The monthly payment you can afford is $495. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.44% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $ Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments. Margin of error for correct responses: +/- .05

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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Suppose that you borrow $17,000 for three years at 8% toward the purchase of a car. Use PMT= PA [---] -nt The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) to find the monthly payments and the total interest for the loan.
K You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $5,500. You plan to put down $1,200 and borrow $4,300. You will need to make annual payments of $1,200 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) OA. Year Cash Flow $4,300 0 OB. Year 0 Cash Flow - $1,200 OC. Year Cash Flow $5,500 0 OD. Year 1 - $1,200 1 $1,200 2 Cash Flow - $4,300 $1,200 - $1,200 2 $1,200 - $1,200 - $1,200 2 $1,200 3 - $1,200 3 $1,200 3 - $1,200 3 $1,200 - $1,200 4 $1,200 4 - $1,200 4 $1,200 5 - $1,200 5 $1,200 5 - $1,200 5 $1,200
You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ EAR: %
You want to buy a car and have negotiated a sale price of $50,000. You can get a loan from your local bank at a rate of 6% annually for 6 years. What is your MONTHLY payment? Reference the below formulas when solving the problem above: PV = FV / (1+r)^t FV = PV(1+r)^t FVA = PMT(((1+r)^t) -1) / r FVA = PMT((1+(r/12)^t(12))-1)/(r/12) PVA = PMT(((1-(1+r)^-t) / r)) PVA = PMT((1-(1+(r/12))^-t(12)))/(r/12)
Also find B) The effective annual rate for the loan from your parents is (Round to two decimal places.) C)The option with the lower effective annual rate is ?
The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n ) 7. If you want to buy a car that costs $16,000 with a loan at 3% APR how many years should you finance the car if you want your payment to be below $230? Do this problem any way you want, but clearly communicate your thinking.
Do all parts its urgent
have tried this and keep getting the answer wrong i can’t figure it out
Also find b) The effective annual rate for the loan from your parents is %. (Round to two decimal places.) C) The option with the lower effective annual rate is
A few years down the road you move out, buying your own home. You decide to take another look at your finances. Your outstanding loan of $250 per month only has 10 payments left on it (out of the original 60) with an interest rate of 12.75%. What is the finance charge “f” what is the unearned intrest how much would it cost to pay it off on payment 51
You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graph
The time value of money is used for many important financial decisions that could affect long-term goals. The interest rate you pay on a loan can affect the amount you pay each period. An advertised monthly lending rate of 9% is about 11% per year. This difference between an advertised rate and the annualized rate is based on finer TVM details that may be overlooked by borrowers. What practical TVM application would you expect to encounter in your future? Explain.

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