An investor takes a loan for $40,000 to purchase inventory to start a business. The terms of the investor's loan state that the interestrate is 12%, interest is compounded monthly, and payments will be made in 12 equal end of month payments. How much would eachpayment be, and how much would the investor need to pay in month 7 to pay off the loan?Click here to access the TVM Factor Table calculator.Monthly payment - $Payoff amount in month 7 = $

We take loans to buy large ticket items like a car or a house which otherwise we cannot afford. The…

Answered: An investor takes a loan for $40,000 to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
You wish to finance the purchase of a sofa for $1,600. A bank offers an APR of 12.25% on a 48-month installment loan. After first using Table 13-1 to find the finance charge, calculate your monthly payment (in $). (Round your answer to the nearest cent.) $
you take out an installment loan to purchase a time share costing $17,000. You make a down payment of $2,500 and finance the balance by making monthly payments of $718.66 for 24 months. Find the APR
You have borrowed $10,000 from a bank at the interest rate of 1% per month. Yourmonthly payment is $554.15. Find the time required to repay the loan.
You wish to finance the purchase of a boat home for $38,300. A finance company offers an APR of 10.5% on a 24-month installment loan. After using Table 13-1 from your text to find the finance charge, calculate the monthly payment. O $1,184.11 $1,244.86 $1,776.16 O $1,867.28
You are going to borrow $30,000 to purchase a car. You agree to repay the loan in 36 monthly payments of $996.43 each. What is the nominal interest rate (APR) of this loan if interest is being compounded monthly? Express your answer as a percentage rounded to the nearest one- hundredth decimal place (for example, enter 15.47 for an answer of 15.4695236%).
Quick Loans will loan you $600 with the understanding that you will repay them $674 in two weeks. What is the APR for this loan?
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per month, and the total finance charge is $9,432. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $).
Suppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.10%, calculated monthly. a. How much will your friend pay you each month? ______________ b. How much will you have in your account at the end of 60 months? (to nearest $___________________ c. What is your effective annual return (EAR), _._ _%?______________
Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest charges. What is the Effective Rate?

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