(1 point) Stereo Inc. sells a stereo system for $200 down and monthly payments of $40...
Stereo Inc. sells a stereo system for $600 down and monthly payments of $60 for the next 2 years. If the interest rate is 2.25% per month, find: a) The cost of the stereo. b) The total amount of interest paid.
You have just purchased a stereo system at the cost of $1,000 on the following credit plan: no down payment, an interest rate of 18% per year (and hence 1.5% per month), and monthly payments of $50. The monthly payment of $50 is used to pay the interest, and any remainder is applied to the principal. Hence, the first month you pay 1.5% of $1,000 in interest ($15). Then, the remaining $35 is deducted from the principal, which leaves a...
Question 9 (1 point) A couple has a $420,000 mortgage amortized over 30 years with monthly payments. They chose to lock in a rate of j2=4% for the first 5 years. Calculate their new monthly payment (rounded up to the next cent) if they refinance at j2=5.00% after the first 5 years are up. Your Answer: Answer Question 10 (1 point) Chandler borrowed $17,500 and agreed to repay the loan with payments of $500 per month. Using an interest rate...
(1 point) Recall that the formula for a simple interest amortized loan, with initial loan value Vo, monthly payments of size m, with interest compounded n times per year for t years at annual interest rate r is rtn.t rt Ben buys his $230,000 home and, after the $40,000 down payment, finances the remainder with a simple interest amortized loan. Ben can pay at most $1,200 per month for the loan, on which the lender has set an annual rate...
1.Calculate the amount of interest that will be paid on a motorcycle loan of $9,000 with a simple interest rate of 7% over the course of 5 years. 2.Calculate the amount of interest that will be paid on a house that costs $110,000 with a simple interest rate of 4% over 30 years. How much total will eventually be paid for the house? 3.A pontoon boat is being sold for $65,000. With an offer of 6% APR (simple interest)for 10...
4. You borrowed $5,000.00 at 1.5% per month and agreed to repay in equal monthly payments over the next 5 years. What is your monthly payment? 3 5. You borrowed $12,000.00, which is to be re-paid in equal quarterly payments of $1,084.00 over the next 3 years. a) Determine the interest rate per interest period based on quarterly compounding. 3 b) What are the nominal and effective interest rates?
3. A $300,000 home loan is amortized by equal monthly payments for 25 years, starting one month from the time of the loan at a nominal rate of 7% convertible monthly. a. Find the monthly payment amount. b. Find the outstanding balance when 10 years of payments remain. c. Find the total interest paid during the last 10 years of the loan? 4. Eddie is repaying a 20-year loan of 10,000 with payments at the end of each year. Each...
A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 8.9%, compounded monthly. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30...
Entered Answer Preview Result 27.35 27.35 incorrect incorrect At least one of the answers above is NOT correct. 1 of the questions remains unanswered (1 point) Sheds R Us sells $900 sheds on a monthly payment plan over 3 years. a) If the interest rate is 3% per month, find the monthly payment. Answer S 27.35 b) If instead the interest rate is 3.25% per month, find the monthly payment Answer-$
2-1 On a loan for $25,000 to purchase a new car, what are the monthly payments at an annual interest rate of 6% (0.5% per month) paid over four years? 2-2 You borrow $20,000 at an annual interest rate of 8%. You will pay the loan back in two equal payments at the end of year 1 and year 4. a. Calculate the amount to be paid each year using the factor tables b. Draw the fully labeled cash flow...