Question 8 A new car priced at $33 500 can be bought on hire purchase with...
Question 8 A new car priced at $33 500 can be bought on hire purchase with a $3 500 deposit and monthly repayments over 6 years.
a. If the balance owed after the deposit has been paid is to be financed using a simple interest loan at 7.5% per annum, find the total interest due on the loan.
b. Find the monthly repayment on the loan correct to two decimal places.
c. Find the annual effective rate of interest on the loan, correct to one decimal place
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Question 8 A new car priced at $33 500 can be bought on hire
purchase with...
A man bought a car which costs GH¢500,000 from a dealer on hire purchase. He pays...
A man bought a car which costs GH¢500,000 from a dealer on hire purchase. He pays a deposit of GH¢300,000 and agree to pay the balance at 8% compound interest per annum. He also agrees to pay GH¢100,000 at the end of each year, for the next two years. (a) Calculate the total amount left to be paid per the agreement. (b) How much will be remaining to be paid after two years?
1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly....
1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly. The loan provides for interest-only payments for 5 years and then reverts to principal and interest repayments sufficient to repay the loan within the original 25-year period. Assume rates do not change. a) Calculate the monthly repayment for the first 5 years. (CLUE: it is INTEREST ONLY) (2 marks) b) Calculate the new monthly repayment after 5 years assuming the interest rate does not...
Loan question. I think I can do 1a correctly but no clue on b. p.s I...
Loan question. I think I can do 1a correctly but no
clue on b.
p.s I got repayment for 1a) as R=£127.67
Question 1 Kes has approached a loan company with the aim of borrowing £11,000. Kes accepts that this will be repaid in level monthly instalments (in arrears) for 10 years. The loan company has agreed with Kes that a setup fee of £500 should be added to the loan amount. This additional cost represents the extra administrative work...
10) You have just taken out an 8-year, $14,000 loan to purchase a new car. This...
10) You have just taken out an 8-year, $14,000 loan to purchase a new car. This loa is to be repaid in 96 equal end-of-month installments. If each of the monthly installments is $200.00, what is the effective annual interest rate on this car loa
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it...
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it as follows: 1/3 down payment, the balance to be paid in 36 equal monthly payments, the first payment due February 1, an annual interest rate of 9% compounded monthly. a. What is the amount of LaQuita's monthly payment b. During the summer LaQuita made enough money to pay off the entire balance due on the car as of October 1 (October 1 payment plus...
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid...
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid at a 7.5% annual rate, compounded monthly, what lump sum would you need to deposit into your account today in order to have the $40,000 after 5 years?
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid...
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid at a 7.5% annual rate, compounded monthly, what lump sum would you need to deposit into your account today in order to have the $40,000 after 5 years ?
Instructor-created question Question Help * A friend of yours bought a new sports car with a...
Instructor-created question Question Help * A friend of yours bought a new sports car with a S4.000 down payment plus a $27,000 car loan that is financed at an interest rate of 0.50% per month for 60 months. After 2 years, the "Blue Book value of her vehicle in the used-car marketplace is $16,000 a. Calculate the required monthly loan payment on the car b. How much does your friend still owe on the car loan c. Compare your answer...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
Question 6 3 pts Today, you are borrowing $13,800 to purchase a car. What will be...
Question 6 3 pts Today, you are borrowing $13,800 to purchase a car. What will be your monthly payment amount if the loan is on annual payment for four years at 7.5 percent interest? $298.40 $333.67 $321.15 $380.24
Loan question. I think I can do 1a correctly but no
clue on b.
p.s I got repayment for 1a) as R=£127.67
Question 1 Kes has approached a loan company with the aim of borrowing £11,000. Kes accepts that this will be repaid in level monthly instalments (in arrears) for 10 years. The loan company has agreed with Kes that a setup fee of £500 should be added to the loan amount. This additional cost represents the extra administrative work...
10) You have just taken out an 8-year, $14,000 loan to purchase a new car. This loa is to be repaid in 96 equal end-of-month installments. If each of the monthly installments is $200.00, what is the effective annual interest rate on this car loa
On January 1, LaQuita bought an used car for $7,200 and agreed to pay for it as follows: 1/3 down payment, the balance to be paid in 36 equal monthly payments, the first payment due February 1, an annual interest rate of 9% compounded monthly. a. What is the amount of LaQuita's monthly payment b. During the summer LaQuita made enough money to pay off the entire balance due on the car as of October 1 (October 1 payment plus...
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid at a 7.5% annual rate, compounded monthly, what lump sum would you need to deposit into your account today in order to have the $40,000 after 5 years?
3. You wish to purchase a $40,000 new car in 5 years. If interest is paid at a 7.5% annual rate, compounded monthly, what lump sum would you need to deposit into your account today in order to have the $40,000 after 5 years ?
Instructor-created question Question Help * A friend of yours bought a new sports car with a S4.000 down payment plus a $27,000 car loan that is financed at an interest rate of 0.50% per month for 60 months. After 2 years, the "Blue Book value of her vehicle in the used-car marketplace is $16,000 a. Calculate the required monthly loan payment on the car b. How much does your friend still owe on the car loan c. Compare your answer...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
Question 6 3 pts Today, you are borrowing $13,800 to purchase a car. What will be your monthly payment amount if the loan is on annual payment for four years at 7.5 percent interest? $298.40 $333.67 $321.15 $380.24
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