You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.1%, your loan payments are $688 per month, and you have 36 months left on your loan. If you pay an additional $1,300 with your next regular $688 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) The new time left to pay off your loan will be months. (Round to one decimal place.) Thus, you reduce the amount of time remaining on the loan by approximately months. (Round to one decimal place.) (...) Full-screen Snip

You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.1%, your loan payments are $688 per month, and you have 36 months left on your loan. If you pay an additional $1,300 with your next regular $688 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) The new time left to pay off your loan will be months. (Round to one decimal place.) Thus, you reduce the amount of time remaining on the loan by approximately months. (Round to one decimal place.) (...) Full-screen Snip

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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19) Special Loan You take out a $100,000 loan to buy a new yacht. The annual loan rate is ? = 0.04 and the loan period is ? = 10. a. How much is the monthly loan repayment amount? b. If you double your loan repayment each month for the first year, how long will it take to repay the loan? E.g., you double your loan payment amount from part (a) for the first twelve months only, t=1, t=2, ..., t=12. 17)
You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How much do you need in your account in the beginning? how much total money will you pull out of the account? how much of that money is interest?
You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 14% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 10% every six months. Which is the lower rate? (Note: Be careful not to round any intermediate steps less than six decimal places.) The effective annual rate for your credit card is ____%. (Round to two decimal places.)
You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (nake certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $167,000 at 4% for 20 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment
You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no money down (i.e., you borrow/finance the full amount), and the rate of interest on the loan is 7.2%? The loan is to be paid back in equal monthly installments over the next 5 years, with the first payment due one month from the purchase date. $395.54 $500.12 $475.38 $557.08 $484.95
Suppose you take out a car loan that requires you to pay $7,000 now, $4,000 at the end of year 1, and $6,000 at the end of year 2. The interest rate is 5% now and increases to 10% in the next year. What is the present value of the payments? Enter your response below rounded to 2 decimal places. Number
You want to be able to withdraw $25,000 each year for 30 years. Your account earns 8% interest.a) How much do you need in your account at the beginning?$b) How much total money will you pull out of the account?$c) How much of that money is interest?
You are thinking about buying a house, and you have one in mind that costs $600,000. The bank is offering 6% loans and requires a 15% down payment. What is the most you can borrow? What will your monthly payment be on a 30 year loan? How much principal will you still owe after 6 years?
You want to buy a $188,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 3.4% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years?
You have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is 10% APR (monthly). You are considering making an extra payment of $200 today (that is, you will pay an extra $200 that you are not required to pay). If you are required to continue to make payments of $550 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $200?
You want to retire on the day you have $900,000 in your savings account. You expect to earn 6 percent, compounded monthly, on your money during your retirement. Your plan is to withdraw $5,750 a month as retirement income from this account. How many years can you be retired until you run out of money? A) 24.75 B) 24.91 C) 25.20 D) 25.50 (Please try to explain by using a Financial Calculator)
You want to be able to withdraw $30,000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?

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