You have taken out a loan of $32,000 to buy a new Saturn. The loan will be paid off in monthly instalments starting in one month over the next 4 years (48 payments). The interest rate on the loan is a stated rate of 8.25% per year. The bank doesn’t tell you, but it is compounded quarterly. Find the amount of the monthly loan payment.

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A: Time, value of money refers to a concept used for evaluating the present value of an asset that will…

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A: Given:

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A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.

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A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

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A: Monthly Loan Payment = PV*(r*(1+r)n)((1+r)n-1)  where: PV is the present value of the loan r is the…

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…

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A: Amortized loan: An amortized loan is a case of the present value of an ordinary annuity.The PV of an…

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A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%

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A:

Q: You borrow $21421 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Formula for calculating EMI: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] P = Loan amount  r=…

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A: Amortization of loan refers to the regular and systematic repayment of the loan amount along with…

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

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

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A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

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

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A: In compounding there is interest on interest also including the principal amount and due to which…

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Q: Please show how to solve this in excel and please show the spreadsheet and formulas. Suppose that…

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A: The series of regular fixed periodic payments made at each interval into deposits or to repay a debt…

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A: Given Information:Loan amount is $400,000 Interest rate is 9% (compounded monthly) Loan tenure is 20…

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A: The objective of the question is to calculate the annual payment for a loan of $1,000,000 at an…

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A: Present value of annuity is computed by following formula:-PV = A*wherePV = Present value of…