The nominal interest rate is calculated using the RATE function:
=RATE(nper,pmt,pv)
=RATE(5*12,-610,36000)*12
=0.65%
Question 7 (1 point) You purchase a new vehicle for $36,000 and agree to make monthly...
You purchase a new vehicle for $36,000 and agree to make monthly payments of $640 for five years starting next month. What nominal interest rate compounded monthly was charged.
You borrow $6,030 to purchase furniture for your house. You agree to make monthly payments for 4 years to pay for the furniture. If the interest rate is 5 percent with monthly compounding, how much are your monthly payments? Assume the first payment is made one month after purchase. $113.38 $138.87 $113.74 $134.70 $133.42
Karim Soltan is shopping for a new vehicle, and has noticed that many vehicle manufacturers are offering special deals to sell off the current year’s vehicles before the new models arrive. Karim’s local Ford dealership is advertising 3.9% financing for a full 48 months (i.e., 3.9% compounded monthly) or up to $4000 cash back on selected vehicles. The vehicle that Karim wants to purchase costs $24 600 including taxes, delivery, licence, and dealer preparation. This vehicle qualifies for $1800 cash...
A person borrowed $30000 to finance the purchase of a new vehicle. The loan will be paid off in 5 years, and the borrowing interest rate is 6%. The person is required to make monthly payments to the loan. What is the amount of monthly payment? N (number of loan payments) = I (monthly interest rate) = % PV (amount borrowed) = FV (ending loan balance) = PMT (required monthly payment) =
As part of your financial planning, you wish to purchase a new car five years from today. As of today, the car costs $14000, and the bank has agreed to provide loans. Consider the following situations to estimate the actual cost of the vehicle: 1. Calculate the price of the car after five years if the interest rate for every six months is 3% and compounded monthly. 2. Estimate the value of the vehicle after five years if the quarterly...
Ralph has just borrowed 1780
dollars to purchase a new stereo, at a nominal rate of interest of
11.6 percent convertible monthly. Although he is charged interest
from the moment he borrows the money, the first payment is not due
for 9 months. If he will make 24 monthly payments, how much
interest is in the 17th payment?
ANNUITIES: Problem5 Prev Up Next (1 pt) Ralph has just borrowed 1780 dollars to purchase a new stereo, at a nominal rate...
While buying a new car, Ali made a down payment of $800 and agreed to make month-end payments of $260 for the next 5 years and 7 months. He was charged an interest rate of 3% compounded semi-annually for the entire term. a. What was the purchase price of the car?
1) You plan to deposit $1,000 every month into an account paying 6% compounded monthly for the next 5 years. How much will you accumulate over this five year period? 2) What is the future value interest factor of an annuity for #1? 3) If you plan to make annual payments instead of the monthly payments indicated in #1 above, how much will you have to deposit annually to have the same sum accumulated in five years as in #1...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
While buying a new car, Sophie made a down payment of $800 and agreed to make month-end payments of $270 for the next 4 years and 7 months. She was charged an interest rate of 2% compounded semi-annually for the entire term. a. What was the purchase price of the car? b. What was the total amount of interest paid over the term?