You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal monthly payments beginning today then what will be your approximate monthly installment?

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $501,000 home…

A: Loan amount (P) = $400,800 (i.e. $501,000 * 0.80)Monthly interest rate (r) = 0.00483333333333333…

Q: Example 5: While shopping for a car loan, you get the following offers: Solid Savings & Loan is…

A: We need to use pmt formula in excel to calculate monthly payment. Where monthly payment is 250 or…

Q: What is your monthly loan payment? What is your expected balance after five years (60 months)?

A: Purchase Price64900Down Payments10000Loan Amount54900No.of Payments84Monthly Rate0.0033Monthly…

Q: You plan to retire in 45 years and would like to be able to spend $4,000 a month (at the end of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: What rate of interest will you have to get per year if you would like to buy a car for $68,500 at…

A: Rate of interest is the percentage of return that is expected to be generated by investing in the…

Q: You owe $24,000 on student loans at an interest rate of 5.45% compounded monthly. You want to pay…

A: Given loan amount is Interest Rate is Time period since number of payments is monthly total number…

Q: A bank is offering to pay you $1000 at the beginning of each month for the next 10 years. The…

A: Payment per month (PMT) = $1,000Timing = BeginningAnnual interest rate is 6%. So, monthly interest…

Q: You recently graduated from Miami University and are looking to purchase a new vehicle. The car…

A: Monthly Payment:A "monthly payment" refers to a recurring amount of money that is paid on a monthly…

Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…

A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…

Q: ou want to purchase a new house when you graduate. The house that you want costs $600,000. You will…

A: Annual Interest is the percentage at which interest is charged on a loan or earned on an investment…

Q: You have $1,000 today in your savings account. How long must you wait for your savings to be worth…

A: Part-1) Present Value is $1,000 The future Value is $2,000 The interest rate is 0.25% compounded…

Q: Your bank is offering to finance your new car purchase for 3 years at 4.95%. If you were to borrow…

A: An annuity is a financial product that provides a series of payments to an individual or entity at…

Q: question 1

A: ReferencesTownsend, C. (2022). Annuities. In A Risky Business: An Actuary's Guide to Quantifying and…

Q: You estimate that you will have $30,000 in student loans by the time you graduate. The interest rate…

A: Amount of the student loan =$30000The interest rate compounded monthly =5%Number of years of loan…

Q: You deposit $100 each month into an account earning 7% interest compounded monthly. a) How much will…

A: Given:P = $100 (monthly deposit)r=0.07 (7% annual interest rate, expressed as a decimal)n=12…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5% for 40…

A: Here, To Find: Monthly payment =? Total Interest =?

Q: Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly…

A: Loan amount=$15000PMT=monthly payment=500NPER=36Find out period required.

Q: (d) Repeat the process with the loan split into two 3 year loans. Round to the nearest dollar. End…

A: Future Value refers to the value of present value of annuity after a given period of time period…

Q: You are interested in purchasing a new home for $200,000, but you need to save 20% of the price to…

A: Data given: Price of new home=$200,000 Savings=20% of Price of new home APR=9% n=5 years   Required:…

Q: of Us Is More.. E Perfect Paper Instr. sS PowerSchool EReading list >> Question Details You have…

A: The question is related to determination of monthly installment on a loan for a period of 10 years.…

Q: You want to buy a new sports car 3 years from now, and you plan to save $4,800 per year, beginning…

A: FV of annuity= pmt*((1+r)^n-1) /r

Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…

A: Monthly Payment: It is the amount that is paid at the end of each month to the lender of the bond by…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You want to buy a new ski boat 2 years from now, and you plan to save $7,300 per year, beginning one…

A: Futures are an important financial concept that represents the value of an investment or asset at a…

Q: A friend agreed to lend you money today. You must repay your friend by making payments of $30 per…

A: To solve this problem, first, find the total payment and the present value of the annuity due. Then,…

Q: You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no…

A: The present value of monthly repayment will be equal to the value of loan amount. Monthly interest…

Q: A person needs $20,000 immediately as a down payment on a new home. Suppose that she can borrow this…

A: Loan amount (PV) = $ 20,000 Annual interest rate = 10% Number of compounding per year = 6 Effective…

Q: Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a…

A: Formulas that are used:-

Q: a.  If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully?…

A: The formula to determine the time period (n) is as follows:If we were to solve this question…

Q: for your next car For the Questions 3-5 assume you want to finance (borrow) $12, and your interest…

A: In this question monthly payment is to be calculated and monthly payment paid for a loan comprises…