You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan's EFF%?
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan's EFF%
- You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years(60 months), and the nominal interest rate would be 12% with interest paid monthly. What is the monthly lob payment? What is the loan's EFF%?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 interestrate will be 12% with interest paid monthly. What will be the monthly loan payment? Whatwill be the loan’s EAR?You want to buy a car, and a local bank will lend you$40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan’s EAR?
- Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 5% now and increases to 9% in the next year. What is the present value of the payments?We want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years , the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loans EAR?You want to buy a car with a local bank that will lend you $20000. The loan will fully amortized over 5 years and the nominal rate of interest will be 14% with interest paid monthly, then a. What will be your monthly payment? b. Effective Annual Rate? c. Explain why total interest is different?
- You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan at 6.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?You want to buy a $160,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.65% interest for the rest. The bank will charge 2 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? $ c) What will be the amount charged for 2 points? d) Find the amount of the monthly payment. $You want to buy a $151,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.25% interest for the rest. a) How much is the loan amount going to be? LA $ b) What will your monthly payments be? LA c) How much of the first payment is interest? LA