You wish to buy a $26,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Monthly payment Interest only payment

You wish to buy a $26,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Monthly payment Interest only payment

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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> Question 7 After making 19 payments on a 60-month, $10,000 car loan with APR of 4%, what is the outstanding balance on the loan? Round your answer to the nearest cent (one-hundredth). Do not include the dollar sign, $.
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Problem 5-63 Effective Interest Rate (LO4) Assume you take out a car loan of $7,700 that calls for 60 monthly payments of $210 each. a. What is the APR of the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Annual percentage rate % b. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
s You borrow $ 2600 at 6% APR to purchase a computer. You plan to make monthly payments of $28.86 until the loan is paid off. Make an amortization table showing payments over the first three months. Round each answer to two decimal places whenever necessary and use the rounded answers to calculate remaining values. Payment Number 1 2 3 Payment $28.86 $28.86 $28.86 Applied to Interest 1-Prt with t=1/12 $ S Applied to Balance Owed Payment Interest $ s $ Outstanding Balance Amount Borrowed - Amount Applied to Balance $ 2600 $ $ $
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ath Advanced MathQ&A LibraryYou borrow Ksh 1.2million to buy a new car. The lender charges 5% p.a. compounded at the end of each month. You intend to pay the loan off in 5 years. i. How much interest will you pay on the loanii. If the interest is compounded once a year instead of monthly, how much interest would you pay iii. What is the effective interest rate for the loan iv. How would the effective interest rate change if interest was compounded fortnightly instead of monthly? v. Generate a table to show how the Loan of 1million to 2million should be paid over 1 yr, 2yrs and 3yrs in successive quantums of 100,000 to enable any borrower to see what best fits their capability of repayment Formulae A = P(1 +i)n B =P(1+ i/m)mn C =(1+i/m)m- 1 You borrow Ksh 1.2million to buy a new car. The lender charges 5% p.a. compounded at the end of each month. You intend to pay the loan off in 5 years. i. How much interest will you pay on the loanii. If the interest is compounded once a year…