ZuoTi.Pro
Question

On September 1, 2013, Susan Chao bought a motorcycle for $36,000. She paid $1,000 down and...

On September 1, 2013, Susan Chao bought a motorcycle for $36,000. She paid $1,000 down and financed the balance with a five-year loan at an APR of 7.8 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan.

  

If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2015?
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1 Monthly payment 706.33 I-PMT(7.896/12,5*12,-35000,0) | 3 Principle due on November 1st 4 $ 21,484.36-PV(7.8%)12,34,-706.33, 0) 5 Payment to bank on November 1, 2015 | $ 22,405.53 |2148436*(1+1%)+706.33

0 1
Add a comment
Know the answer?
Add Answer to:
On September 1, 2013, Susan Chao bought a motorcycle for $36,000. She paid $1,000 down and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On September 1, 2013, Susan Chao bought a motorcycle for $36,000. She paid $1,000 down and...

    On September 1, 2013, Susan Chao bought a motorcycle for $36,000. She paid $1,000 down and financed the balance with a five-year loan at an APR of 7.8 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan.    If the bank charges her a 1 percent prepayment penalty based on...

  • On September 1, 2013, Susan Chao bought a motorcycle for $22,000. She paid $1,000 down and...

    On September 1, 2013, Susan Chao bought a motorcycle for $22,000. She paid $1,000 down and financed the balance with a five-year loan at an APR of 6.4 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan.    If the bank charges her a 1 percent prepayment penalty based on...

  • On September 1, 2013, Susan Chao bought a motorcycle for $23,000. She paid $1,200 down and...

    On September 1, 2013, Susan Chao bought a motorcycle for $23,000. She paid $1,200 down and financed the balance with a five-year loan at an APR of 6.5 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan. If the bank charges her a 2 percent prepayment penalty based on the...

  • On September 1, 2013, Susan Chao bought a motorcycle for $24,000. She paid $1,100 down and...

    On September 1, 2013, Susan Chao bought a motorcycle for $24,000. She paid $1,100 down and financed the balance with a five-year loan at an APR of 6.6 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan.    If the bank charges her a 1 percent prepayment penalty based on...

  • On September 1, 2018, Susan Chao bought a motorcycle for $34,000. She paid $1,100 down and...

    On September 1, 2018, Susan Chao bought a motorcycle for $34,000. She paid $1,100 down and financed the balance with a five-year loan at an annual percentage rate of 7.6 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2018). Two years later, at the end of October 2020, Susan got a new job and decided to pay off the loan.    If the bank charges her a 1 percent prepayment penalty...

  • Question 8 (of 10) value: 1.00 points On September 1. 2013, Susan Chao bought a motorcycle...

    Question 8 (of 10) value: 1.00 points On September 1. 2013, Susan Chao bought a motorcycle for $40,000. She paid S1,100 down and financed the balance with a five-year loan at an APR of 8.2 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (ie., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan. If the bank charges her a...

  • 1) Eliza bought a television at RM5,500 by instalment payments. She paid 20% for the down...

    1) Eliza bought a television at RM5,500 by instalment payments. She paid 20% for the down payment and the balance was settled by making 24 monthly instalments. If the interest charged was 8% per annum on the original balance, find: a) The total interest charged. (2m) b) The monthly payment. (2m) c) The instalment price. (1.5) d) The outstanding balance if she decided to settle the balance immediately after making the 12th payment using the Rule of 78. (3.5m)

  • 4. -/1 points HarMathAp 126.5.015.MI. My Notes Ask Your Teacher When Maria Acosta bought a car 2 years ago, she bor...

    4. -/1 points HarMathAp 126.5.015.MI. My Notes Ask Your Teacher When Maria Acosta bought a car 2 years ago, she borrowed $17,000 for 48 months at 7.8% compounded monthly. Her monthly payments are $413.43, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 year mark? (Round your answer to the nearest cont.) Need Help? Master T alk to a Tutor lo s Your Teacher

  • 13. Phoebe realizes that she has charged too much on her credit card and has racked...

    13. Phoebe realizes that she has charged too much on her credit card and has racked up $7,000 in debt. If she can pay $200 each month and the card charges 17 percent APR (compounded monthly), how long will it take her to pay off the debt? A. 28.63 months B. 35.00 months C. 47.71 months D. 48.68 months 14. What is the interest rate ofa 4-year, annual $1,000 annuity with present value of $3,500? A. 3.85 percent B. 5.56...

  • 1-determine how much of the loan will be paid off by the final ballon payment 2-how...

    1-determine how much of the loan will be paid off by the final ballon payment 2-how much loan must be paid off by the monthly payment 3-the monthly payments needed to pay off the portion of the loan that is not paid off by the final balloon payment (Complex stream of cash flows) Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing that is, a loan from the current owners...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT