Kevin had 2 options. He could rent a car for $450 for each month or buy...
Kevin had 2 options. He could rent a car for $450 for each month or buy it $1800. He financed it with interest rate 7.25% compound quarterly and he has to pay off in 6 months. What would be monthly payment ?
Homework Answers
Monthly payments can be calculated using the formula: Loan amount*(r/n)/(1-(1+r/n)^-nt); Here r is the interest rate per quarter, as it is quarterly compounding= 7.25%/4= 1.8125%, n is the number of payments per quarter=3 and t is number of quarters=2.
On substituting, we get 1800*(1.8125%/3)/(1-(1+1.8125%/3)^-6= 306.38
So, Monthly Payment would be $306.38
Add Answer to:
Kevin had 2 options. He could rent a car for $450 for each month
or buy...
Kevin bought a new car for $22,000. He made a down payment of $9,500 and has...
Kevin bought a new car for $22,000. He made a down payment of $9,500 and has monthly payments of $308.10 for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.
Derek borrows $35,692.00 to buy a car. He will make monthly payments for 6 years. The...
Derek borrows $35,692.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.45%. After a 13.00 months Derek decides to pay off his car loan. How much must he give the bank?
Derek borrows $32,107.00 to buy a car. He will make monthly payments for 6 years. The...
Derek borrows $32,107.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 6.26%. After a 13.00 months Derek decides to pay off his car loan. How much must he give the bank?
Karou is considering different options for financing the $15,000 balance on her planned new car purchase....
Karou is considering different options for financing the $15,000 balance on her planned new car purchase. The cheapest advertised rate among the local banks is 6.25 percent for 48-month car loan. The current rate on her revolving home equity line is 8.75 percent. Karou is in the 25 percent federal tax bracket and the 5.75 percent state tax bracket. Calculate Karou's monthly car payment using your financial calculator. Compare the payment amount if she uses the 48-month car loan through...
Nader plans to buy a used car. He can afford to pay $280 at the end...
Nader plans to buy a used car. He can afford to pay $280 at the end of each month for three years. The best interest rate he can find is 9.8%la, compounded monthly. For this interest rate, the most he could spend on a vehicle is $8702.85. Determine the amount he could spend on the purchase of a car if the interest rate is 9.8%/a, compounded annually.
In January 2015, the interest rate on 36 month car loan was 7.4%. Suppose you have a contract to buy a car for $8000.a)...
In January 2015, the interest rate on 36 month car loan was 7.4%. Suppose you have a contract to buy a car for $8000.a) If a bank will lend you $8000 amortized at 7.4% for 36 months, what is your monthly payment? b) What is the total amount you pay? c) What is the interest you pay?
Derek plans to buy a $32,752.00 car. The dealership offers zero percent financing for 56.00 months...
Derek plans to buy a $32,752.00 car. The dealership offers zero percent financing for 56.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him $____ cash back. He can borrow money from his bank at an interest rate of 4.61%. Answer format: Currency: Round to: 2 decimal places. Derek decides to buy a new car. The dealership offers him a choice of paying $527.00...
Q3: Mike decide to take the mortgage loan to buy a house with total price of...
Q3: Mike decide to take the mortgage loan to buy a house with total price of $200,000.He made 50,000 for down payment. He decided to pay back the money every quarter in the equal amount. What should be his equal quarterly payment be over the next 20 years if the annual interest rate is 7%? Q4: You want to buy a car, and a bank will lend you $30,000. The loan would be fully amortized over 3 years (36 months),...
• 1) A new car is purchased and a $20,000 loan is taken. The loan is...
• 1) A new car is purchased and a $20,000 loan is taken. The loan is for 5 years (60 months) and the interest rate is 7.9% compounded monthly. What is the monthly payment? • 2)A new car is purchased and a $20,000 loan is taken. The loan is for 5 years (60 months) and the interest rate is 7.9% compounded monthly. What is the balance after 3 years? . 3) A new car is purchased and a $30,000 loan...
You have decided to buy a used car. The dealer has offered you two options: (FV...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Pay $660 per month for 25 months and an additional $10,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $18,980, due when you purchase the car. 1-a. Determine how much cash...
Nader plans to buy a used car. He can afford to pay $280 at the end of each month for three years. The best interest rate he can find is 9.8%la, compounded monthly. For this interest rate, the most he could spend on a vehicle is $8702.85. Determine the amount he could spend on the purchase of a car if the interest rate is 9.8%/a, compounded annually.
• 1) A new car is purchased and a $20,000 loan is taken. The loan is for 5 years (60 months) and the interest rate is 7.9% compounded monthly. What is the monthly payment? • 2)A new car is purchased and a $20,000 loan is taken. The loan is for 5 years (60 months) and the interest rate is 7.9% compounded monthly. What is the balance after 3 years? . 3) A new car is purchased and a $30,000 loan...
Most questions answered within 3 hours.
-
A business executive has the option to invest money in two
plans: Plan A guarantees that...
asked 1 hour ago -
Hello, can someone please help me answer this question?
How much heat is absorbed by a...
asked 1 hour ago -
. A marketing researcher conducted a survey of 25 shoppers
randomly selected at the local mall...
asked 2 hours ago -
Create an comprehensive response to the
following:
Antimicrobial agents work on a multitude of microbes (bacteria,...
asked 2 hours ago -
6.13 LAB: Step counter. Section 6.3.
A pedometer treats walking 2,000 steps as walking 1 mile....
asked 1 hour ago -
(14.2) A block of mass m = 10 kg riding on a frictionless
horizontal plane is...
asked 2 hours ago -
Use any search engine to search for articles about Starbucks
partnership with Tata Companies in India...
asked 1 hour ago -
Let’s say that for some reason Bank Excess Reserves suddenly
increase sharply. What effect would this...
asked 2 hours ago -
Given:
Curent Assets: $600,000
Total Assets: $2,600,000
Current Liabilities: $500,000
Total Liabilities: $1,700,000
What is the...
asked 2 hours ago -
1. What is a “Bankster”? What is insider trading? Why is it
illegal?
2. What is...
asked 2 hours ago -
A transverse wave on a cord is given by
D(x,t)=0.18sin(2.7x−61.0t), where Dand x are in m...
asked 2 hours ago -
ASSIGNMENT
ANSWER ANY TWO OF THE FOLLOWING IN 2-3 PARAGRAPHS OF EACH
QUESTION.
1: Where is...
asked 2 hours ago