You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly. What will be the monthly loan payment? What will be the loan’s EAR?

Q: You want to buy a $195,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The Down-payment is the sum of money first paid for something. No interest will be charged on…

Q: You want to buy a $219,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Given: Particulars Amount Cost of house $219,000 Down payment 5% Years 30 Interest rate…

Q: You want to buy a $190,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: According to Bartleby guidelines, if a question involves multiple sub-parts, then 1st sub 3 parts…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

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: You want to buy a $228,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Part (a) Given information, Home price = $228,000Down payment = 5% or 0.05 Calculate the loan amount…

Q: You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing…

A: Mortgage loans are paid by equal and fixed monthly payment that carry the payment of interest and…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…

A: A loan is an agreement between two parties where an amount is forwarded in exchange for a promise of…

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: You want to buy a $135,000 home. You plan to pay 20% as a down payment, and take 6.9% interest for…

A: Loans are paid by the equal monthly payments that carry the payment for principal amount and also…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: You want to buy a new car. You can afford payments of $250 per month and can borrow the money at an…

A: The term mortgage refers to a type of loan that is for the long term, and it usually has the asset…

Q: ou are taking a car loan of 100000, for 5 years and monthly payment of 1648, the interest rate is…

A: Loan is the present value of payment made for the loan based on the time and interest rate of the…

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 house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

Q: You are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55…

A: The time value of money is a concept in finance that recognizes the idea that a sum of money has…

Q: You want to buy a car. The loan amount will be $25,000. The company is offering a 4% interest rate…

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

Q: You've just bought a new flat-screen TV for $4000 and the store you bought it from offers to let you…

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

Q: You want to buy a $215,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The loan amount represents the money borrowed from a lender, whereas the monthly payment encompasses…

Q: Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at…

A: Present value refers to the value of all future cash flows which are discounted at interest rate or…

Q: You took out a loan to buy a new car. The monthly interest rate on the loanis 2.5% . You haveto pay…

A: Here's a detailed calculation for better understanding. Present Value of an Annuity DueThe present…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Down payment: When an asset is bought or a loan is taken, there would be some token amount that…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: A loan is a method through which an individual can borrow money from a financial institution for…

Q: You want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate…

A: Monthly Payment: A borrower pays down portion of the remaining sum together with the interest on the…

Q: You want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for…

A: Present Value Method :— It is method for calculating present Value of All periodical future cash…

Q: You want to buy a $214,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: a) Mortgage amount = Cost of home - Down payment  Monthly payments are calculated using excel PMT…

Q: You are buying vehicle for $20,000 and are paying $2,000 as a down payment. You have negotiated a…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: you want to buy a car and a local bank will lend you 15000. the loan will be fully amortized over 5…

A: Compound = n = Monthly = 12Present Value = pv = 15,000Time = t = 5 * 12 = 60Interest Rate = r = 10 /…

Q: You are going to buy an apartment, and are borrowing 5 000 000 from a bank for 10 years. The…

A: EAR is the effective interest rate that is interest rate after considering impact of compounding on…

Q: you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Calculate the following manually. a. How much interest would you pay for 6 years for each bank…

A: Please refer to the excel spreadsheet below for the excel calculations and the snapshot of the…

Q: Suppose you would like to purchase a new mustang GT. The sticker price of the mustang you want is…

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