Question

The price of a new car is $28,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 10%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 48 mo? Over a period of 72 mo? 48 mo s 72 mo s (b) What will the interest charges be if she elects the 48-mo plan? The 72-mo plan? 48 mo$ 72 mo$ Need Help? Read it 8. [-/0.1 Points) DETAILS TANAPMATHS 4.3.024. PRACTICE ANOTHER MY NOTES A group of private investors purchased a condominium complex for $4 million. They made an initial down payment of 15% and obtained financing for the balance. If the loan is to be amortized over 13 years at an interest rate of 12% per year compounded quarterly, find the required quarterly payment. (Round your answer to the nearest cent.) $ Need Help? Read Tuik te Tutor MY NOTES PRACTICE ANOTHER 9. [-/0.1 Points) DETAILS TANAPMATHS 4.3.026. Jessica wants to accumulate $14,000 by the end of 6 y in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-yr period. If the bank pays interest at the rate of 7 per year compounded monthly, how much does the have to deposit each month into her account? (Round your answer to the nearest cent.) $

Answer 1

Ques-7)

Price of new Car = $28,000

Down-Payment = 25%

Loan Amount = $28,000*(1-25%)

= $21,000

- Calculating the Monthly Payment in case of 48-month period:-

Where, P = Loan AMount = $21,000

r = Periodic Interest rate = 10%/12 =0.8333%

n= no of periods =48

Monthly Payment = $532.61

- Calculating the Monthly Payment in case of 72-month period:-

Where, P = Loan AMount = $21,000

r = Periodic Interest rate = 10%/12 =0.8333%

n= no of periods =72

Monthly Payment = $389.04

b). Interest Charges in Case of 48-month = (No of Payments*Monthly Payment)- Loan Amount

= (48*$532.61) - $21,000

= $4565.28

Interest Charges in Case of 72-month = (No of Payments*Monthly Payment)- Loan Amount

= (72*$389.04) - $21,000

= $7010.88

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