Homework Answers
Calculate annual payment as follows:
Present value= Annual payment*(1-(1+Rate)^-years)/rate
10,183 = Annual payment*(1-(1+11.12%)^-5)/11.12%
Annual payment = 10,183 / 3.68476744
Annual payment = $2763.54.
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annual payment
You are taking a loan out on a car. The purchase price of the...
Suppose you purchase a new car for $21,500. You make a down payment of $5000 (ie....
Suppose you purchase a new car for $21,500. You make a down payment of $5000 (ie. you take a loan of $16,500), and then finance the balance over 36 months at APR of 6% with monthly compounding. What will be the size of the monthly car loan payment?
Comparing Different Financing Options EXAMPLE 3.9 Buying a Car: Paying in Cash versus Taking a Loan...
Comparing Different Financing Options EXAMPLE 3.9 Buying a Car: Paying in Cash versus Taking a Loan Consider the following two options proposed by an auto dealer: • Option A: Purchase the vehicle at the normal price of $26,200 and pay for the vehicle over 36 months with equal monthly payments at 1.9% APR financing • Option B: Purchase the vehicle at a discounted price of $24,048 to be paid im- mediately. The funds that would be used to purchase the...
Ricardo purchase a used car for $10,000 He wrote a check for $2,000 as a down payment for the car and financed the $23,681 balance
Ricardo purchase a used car for $10,000 He wrote a check for $2,000 as a down payment for the car and financed the $23,681 balance. The annual percentage rate (APR) is 9% compounded monthly, and the loan is to be repaid in equal monthly installments over the next four years. How much is Ricardo's monthly car payment?
You want to buy a new car, but you can make an initial payment of only...
You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. . If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum price o. How much can you afford if you finance the purchase over...
6. Calculating simple interest and APR on a single-payment loan Aa Aa E You are taking...
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Lupe made a down payment of $2,000 toward the purchase of a new car. To pay...
Lupe made a down payment of $2,000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $200/month for 30 mo. What is the cash price of the car? $3,611.04 $7,161.54 $8,956.98 O $5,161.54
You are looking to buy a car. You can afford $550 in monthly payments for four...
You are looking to buy a car. You can afford $550 in monthly payments for four years. In addition to the loan, you can make a $2,000 down payment. If interest rates are 9.50 percent APR, what price of car can you afford (loan plus down payment)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmi...
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $35,000. This balance can be financed by the auto dealer at 2.3% APR (compounded monthly) and repaid over 60 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 9.1% (compounded monthly) over 60 months. Determine...
Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim that if he can come up with a down payment of $5,400, the dealer will finance the balance of the price at a 7% annual rate over 5 years (60 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer,...
The purchase price of a car is $60,000. Mr. Posey makes a down payment of $30,000...
The purchase price of a car is $60,000. Mr. Posey makes a down payment of $30,000 and borrows the balance from a bank at 6% APR interest, compounded monthly, for 5 years. Calculate the nearest value of the required monthly payments to pay off the loan a) $ 400 b) 580 c) $600 d) $1,160
Comparing Different Financing Options EXAMPLE 3.9 Buying a Car: Paying in Cash versus Taking a Loan Consider the following two options proposed by an auto dealer: • Option A: Purchase the vehicle at the normal price of $26,200 and pay for the vehicle over 36 months with equal monthly payments at 1.9% APR financing • Option B: Purchase the vehicle at a discounted price of $24,048 to be paid im- mediately. The funds that would be used to purchase the...
You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. . If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum price o. How much can you afford if you finance the purchase over...
6. Calculating simple interest and APR on a single-payment loan Aa Aa E You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: In the equation, Fs is the finance charge for the loan. What are the other values? P is the r is the stated t is the...
Lupe made a down payment of $2,000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $200/month for 30 mo. What is the cash price of the car? $3,611.04 $7,161.54 $8,956.98 O $5,161.54
You are looking to buy a car. You can afford $550 in monthly payments for four years. In addition to the loan, you can make a $2,000 down payment. If interest rates are 9.50 percent APR, what price of car can you afford (loan plus down payment)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value
You have decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $35,000. This balance can be financed by the auto dealer at 2.3% APR (compounded monthly) and repaid over 60 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 9.1% (compounded monthly) over 60 months. Determine...
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The purchase price of a car is $60,000. Mr. Posey makes a down payment of $30,000 and borrows the balance from a bank at 6% APR interest, compounded monthly, for 5 years. Calculate the nearest value of the required monthly payments to pay off the loan a) $ 400 b) 580 c) $600 d) $1,160
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