Homework Answers
EMI of loan = Loan amount / PVIFA (n, i%)
= $ 18000 / PVIFA (25, 1.25%)
= $ 18000 / 21.35727
= $ 842.80
The monthly payment at the specified loan rate over the given period is $ 842.80
The Balance (present value) of loan (After ten payments) = 11462.65
Add Answer to:
You purchased a car using some cash and borrowing $18,000 the present value for 25 months...
You purchased a car using some cash and borrowing $12,000 (the present value) for 53 months...
You purchased a car using some cash and borrowing $12,000 (the present value) for 53 months at 11% per year. Calculate the monthly payment (annuity). Then assume you have made ten payments. What is the balance (present value) of your loan? The monthly payment at the specified loan rate over the given period is $______. (Round to the nearest cent.)
P4A.19 (similar to) Question Help You purchased a car using some cash and borrowing $15,000 (the...
P4A.19 (similar to) Question Help You purchased a car using some cash and borrowing $15,000 (the present value) for 32 months at 15% per year. Calculate the monthly payment (annuity). The monthly payment at the specified loan rate over the given period is $ . (Round to the nearest cent.)
Please round to 2 decimal places. A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 5 years. She decides to pay $369 instead of the monthly payment require...
Please round to 2 decimal
places.
A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 5 years. She decides to pay $369 instead of the monthly payment required by the oan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) $358.12 How much extra did she pay per month? (Round your answer to the nearest cent.) s 10.88 b) How many $369 payments will she...
What is the present value of a $500 perpetuity if the interest rate is 6%? If...
What is the present value of a $500 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be? Round your answers to the nearest cent. Present value at 6%: $ Present value at 12%: $ You borrow $85,000; the annual loan payments are $11,339.91 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. You have saved $5,000 for a down payment on...
A recent college graduate buys a new car by borrowing $20,000 at 7.2%, compounded monthly, for...
A recent college graduate buys a new car by borrowing $20,000 at 7.2%, compounded monthly, for 4 years. She decides to pay $501 instead of the monthly payment required by the loan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) How much extra did she pay per month? (Round your answer to the nearest cent.) (b) How many $501 payments will she make to pay off the loan? (Round your answer...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
Question Help The unpaid balance of an installment loan is equal to the present value of...
Question Help The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount is the annual interest rate, n is the number of payments per year, and is the number of years remaining in the loan. Complete partsa and b. below PPMT Multiply both sides of the loan payment formula by b. The price of a car...
1.Payments are not equal, they change from period to period. Find the present value of the...
1.Payments are not equal, they change from period to period. Find the present value of the payment in each period and sum them to find the present value of all the cash flows. What is the present value of an investment that pays $200 in year 1, $300 in year 2, and $400 in year 3? Assume a rate of return of 12%. ($702.44) 2.You are buying a new car and will have a 12,500 loan with equal payments for...
Problem 5-25 Present Value (LG5-4) You are looking to buy a car. You can afford $390...
Problem 5-25 Present Value (LG5-4) You are looking to buy a car. You can afford $390 in monthly payments for four years. In addition to the loan, you can make a $1,600 down payment. If interest rates are 8.50 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
Rachel purchased a car for $18,000 three years ago using a 4-year loan with an interest...
Rachel purchased a car for $18,000 three years ago using a 4-year loan with an interest rate of 7.2 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loon. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the...
P4A.19 (similar to) Question Help You purchased a car using some cash and borrowing $15,000 (the present value) for 32 months at 15% per year. Calculate the monthly payment (annuity). The monthly payment at the specified loan rate over the given period is $ . (Round to the nearest cent.)
Please round to 2 decimal
places.
A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 5 years. She decides to pay $369 instead of the monthly payment required by the oan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) $358.12 How much extra did she pay per month? (Round your answer to the nearest cent.) s 10.88 b) How many $369 payments will she...
What is the present value of a $500 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be? Round your answers to the nearest cent. Present value at 6%: $ Present value at 12%: $ You borrow $85,000; the annual loan payments are $11,339.91 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. You have saved $5,000 for a down payment on...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
Question Help The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount is the annual interest rate, n is the number of payments per year, and is the number of years remaining in the loan. Complete partsa and b. below PPMT Multiply both sides of the loan payment formula by b. The price of a car...
Problem 5-25 Present Value (LG5-4) You are looking to buy a car. You can afford $390 in monthly payments for four years. In addition to the loan, you can make a $1,600 down payment. If interest rates are 8.50 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
Rachel purchased a car for $18,000 three years ago using a 4-year loan with an interest rate of 7.2 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loon. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the...
Most questions answered within 3 hours.
-
Katelynn, a physician, earns $200,000 from her medical practice
in the current year. She receives $45,000...
asked 55 seconds from now -
Each row of the table below describes an aqueous solution at
25°C
.
The second column...
asked 3 minutes ago -
A horizontal wire is at y = 0. Current travels in the +x
direction. The magnetic...
asked 3 minutes ago -
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 25 minutes ago -
Martinez Company’s relevant range of production is 7,500 units
to 12,500 units. When it produces and...
asked 23 minutes ago -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 28 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 27 minutes ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 33 minutes ago -
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 55 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 55 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 47 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 47 minutes ago