Your uncle will sell you his bicycle shop for $170,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?

Your uncle will sell you his bicycle shop for $170,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

See similar textbooks

Similar questions

Your uncle will sell you his bicycle shop for $220,000, with "seller financing," at a 5.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your monthly payments be?
Your friend will sell you his coffee shop for $475,000, with "seller financing," at a 9.0% nominal annual rate. The terms of the loan would require you to make 12 equal end - of -month payments per year for 8 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be? (Do not round intermediate calculations, round your final answer to the nearest cent.)
Talitha will sell her bicycle shop to you for R250 000, with seller financing at a 6% nominal annual rate. The terms of the loan will require you to make 12 equal end-of-month payments per year for four years, and then make an additional final (balloon) payment of R50 000 at the end of the last month. What will your equal monthly payments be?
You lend $450 to a friend who promises to make 4 payments to you of $120 at the end of 6 months, 12 months, 18 months and 24 months. Draw a timeline from your perspective. If you can reliably earn 5% per year, what is the net present value (NPV) of this loan?
Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and the bank offers you a 5-year 5.1% APR negative amortization loan with a payments $1,258 per month, and a balloon payment of $92,233 (your 360th payment). How much will your remaining payments be?
Suppose you are buying your first condo for $240,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30- year, monthly payment, amortized mortgage at a 6.8% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Oa. $1,564.62 O b. $1,900.00 Oc. $1,466.83 Od. $1,555.80 e. $1,458.57
You have found your dream house. The selling price is 120,000. You will put $20,000 down and obtain a 25-year fixed-rate mortgage at 8.75% (APR compounded semiannually) for the rest. You plan to prepay the loan by making an additional payment each month along with your regular payment. How much extra must you pay each month if you wish to pay off the load in 20 years? (Assume there is no early payment penalty).
You want to buy a house, and a local bank will Ilend you $100,000. The loan will be fully amortized over 20 years (240 months), and the nominal interest rate will be 12% with interest paid monthly. What will be the monthly loan payment? $13,387.88 $1,101.09 $5,541.53 $12,000.00
You are considering borrowing $100,000 for 30 years at a compound annual interest rate of 9%. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. What is the annual payment that will fully amortize the loan? Select one: O a. $3,333.33 O b. $6,400.30 O c. $12,333.33 O d. $9,733.63 e. $8,423.33 You recently received a letter from Chase National Bank that offers you a new credit card that ?
You are buying a house for $130,000.00 with a downpayment of $26,000.00. The loan will be paid back over 20 years with monthly payments of $582.01. If the interest rate is 3.1% compounded monthly, what would the smaller concluding payment be? The concluding payment would be $ (Round to 2 decimal places.) Submit Question
If Your bank _offers to lend y~u $100,000 at_ an 8.5% annual interest rate to start your new business. The terms reqwre you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
Suppose you borrow $1million to purchase a house. The bank offers you the fixed borrowing rate 4% APR compounded semi-annually for a 5-year term. You decide on making semi-monthly payments (every half-month) with an amortization period of 30 years. How much do you still owe at the end of the 5-year term? The answer is within $50 of the following value.