You seriously want to buy the latest 4x4 vehicle but it costs a great deal of money: R1,560m. The dealer explains his financing scheme in the following way: he needs a deposit of 10% and then you must pay him a fixed monthly amount such that the present value of those payments over a period of 5 years will cover the remaining cost of the car. How much should you pay per month if the offered interest rate is 16,5% per year?

Q: Suppose you are planning to buy a car and just found one that is selling for $5,700. You have $1,000…

A: Equated monthly payment is a fixed payment given by the borrower of the loan to the lender on a…

Q: You are selling your car and the dealership says to you, "we can either give you $15,000 today or we…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

Q: Go to the slide "Limit Order Book: illiquid stock" showing a screenshot of the limit order book for…

A: The limit order book lists the number of shares being bid or asked at each price point. It's a…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: Suppose you can afford to pay $ 250 a month for 8 years towards a new car with no down payment. If…

A: Given details are : Monthly payment = $250 Time period = 8 years Interest rate = 4.75% We need to…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you…

A: Present value of car = $9,000Interest rate = 10%Number of annual payments = 4To find: Minimum annual…

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

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

Q: Suppose you found the house that you have been looking for years! It comes with a price tag of…

A: Price of house: $210,000Down payment: 10%Loan rate: 3.5%Loan period: 30 years

Q: You wish to buy a car that has a monthly payment of $250 and with a down payment of $1000. You find…

A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

Q: sidering buying a new car. The sticker price is $15, ment. If you can negotiate an annual interest…

A: In this we need to calculate present value factor and get monthly payment.

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: Fou want to buy a $221,000 home. You plan to pay 15% as a down payment, and take OL he rest. a) How…

A: Down payment is the advance cash payment that is made out of pocket for the purchase of a home and…

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash…

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under…

Q: We really want a new car and want to know if we can realistically afford it but also see how much…

A: Monthly payment is calculated by pmt formula in excel.

Q: A car is priced 35000. The price is expected to rise by 3% a year.If your local bank offers 10%…

A: Solution:- When an amount is invested in a bank, it earns interest on it. With rise of inflation,…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: 5) You are considering buying a Chevy Cruze. The sticker price is $15,000 and you have $2,000 to put…

A: Car price = $15,000Down payment = $2,000Interest rate = 10%Number of years = 5 years

Q: You want to buy a car and have negotiated a sale price of $50,000. You can get a loan from your…

A: Present value = pv = $50,000 Compound = monthly = 12 interest rate = r = 6 / 12 = 0.5% Time = t = 6…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: You want to buy a $234,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Mortgage refers to a covered loan that is borrowed for purchasing a property. The property itself…

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: ou have decided to buy a house! The house you have decided on has a list price of $380,000. You will…

A: in this we need to calculate the present value factor monthly and get monthly payments.

Q: In order to purchase a brand new set of living room furniture, you take out a loan from the bank at…

A: Cash price is the present value of quarterly payment made at the of the quarter.

Q: Quantitative Problem: You need $18,000 to purchase a useel car. Your wealthy uncle is willing to…

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

Q: You are thinking about buying a house, and you have one in mind that costs $600,000. The bank is…

A: Part a: The most you can borrow.To find out the most you can borrow, you first need to calculate the…