12 r Lr 1+ 12 M = 12/ 12 1+ 12 L the loan amount in dollars r the annual interest rate t=the number of years of the loan M the monthly payment in dollars A friend of yours is interested in buying a new Jeep Grand Cherokee that is for sale at Bill DeLuca in Haverhill, MA for $49,530. After the dealership receives a 5% down payment, Bank of America will finance your friend with a 4-year auto loan at 7.15% annual interest, the current national average for a new car 4-year auto loan. Round each value to the nearest hundredth. a) What is the down payment amount? b) What is the loan amount? c) How much is each monthly payment?

12 r Lr 1+ 12 M = 12/ 12 1+ 12 L the loan amount in dollars r the annual interest rate t=the number of years of the loan M the monthly payment in dollars A friend of yours is interested in buying a new Jeep Grand Cherokee that is for sale at Bill DeLuca in Haverhill, MA for $49,530. After the dealership receives a 5% down payment, Bank of America will finance your friend with a 4-year auto loan at 7.15% annual interest, the current national average for a new car 4-year auto loan. Round each value to the nearest hundredth. a) What is the down payment amount? b) What is the loan amount? c) How much is each monthly payment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Gmail News Translate Post Attendee - Zo... A new car costing $28,000 can be financed with a four-year loan at 6.12%. A three-year-old model of the same car costs $16,000 and is financed with a four-year loan at 6.86% with monthly payments of $382.10. Use the present value of an annuity formula to find the difference in monthly payments between financing the new car and the used car. Rund to the nearest cent. ni pmt 1 P- $ 282.58 O$ 277.02 O$ 382.10 O$ 166.11
You have decided to purchase a new car. The car costs $27,500. The dealer is offering to finance the car for 6 years at a rate 8.75%. How much would your monthly payment be? Question 3 options: $492 $495 $504 $518 $511
Vijay shiyal
suppose you want to buy a new car that costs you 11993 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan? Select one: a. 2827.57 b. 62860.71 c. None of the options d. 2288.11 e. 1921.51
it For pre nments Unit Activity: Credit Cards and Large Purchases Buying a House Bethany and Samuel are buying a new house. They have $25,000 saved for a down payment and know that they can afford a monthly payment of $1,500 or less. They also know that the best interest rate they can get is 5.1% annually and they want to sign a 30-year mortgage. Part A If 5.1% is the annual interest rate, what is the monthly interest rate? BI U X² X₂ V 田 15px- Space used (includes formatting): 0/ 15000 V V Part B If they sign a 30-year mortgage, how many monthly payments will they make? BIUX² X₂ 15px M くく EEEEE 6 of 7 E Dec 1 1:56 Save & Exit
Mario is buying a new car for $18,500. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 5% down payment, 4.5% APR for 5 years 10% down payment, 3.5% APR for 4 years
ASAP PLZ ! You want to purchase a home for $747,555 in South Calgary. Your mortgage officer at BMO has informed you that the rate on mortgages is 2.50% compounded quarterly. You are a prudent saver and currently have $124,399 in your savings accounts. After legal and closing fees, you have $113,399 available for a down payment. The rest you must borrow from the bank. You believe that a thirty-five year amortization period will make the payments manageable. What are the monthly payments to meet the terms of the mortgage? (Hint don't lose decimals on the interest rate). $4,282.83 $2,670.39 $2,265.31 $2,838.71
You want to purchase a new company car for employees to visit clients. If you purhcase the car for $60,000 with a loan that has an APR of 12% in which interest accrues monthly, what would you expect the monthly payments to be if the term of the loan is 5 years? $1,683 $572 $1,322 $1,000
Not sure where to start this one Suppose that you purchase a new home that costs $180,000. A local bank offers you a 3% fixed rate mortgage loan for 30 years. Also, you are required to make a 20% down payment immediately. a) Find your monthly payment. b) Find the interest amount and the principal amount in your first monthly payment. c) Find the total interest paid for 30 years.
Number 3: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13% HST for a total price of $28,250. The dealership has a deal for $0 down payment and charges 2.79% interest on the loan. Rajesh plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. Question a. How much will his weekly care loan payment be? b. How much will he have paid to the dealership by the time his loan is paid off? c. How much interest will be paid? Number 4: Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 19% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely. Question a. What would Hak Young’s minimum payment have to be in order to pay off his debt in 5 years? b. What will be the total interest paid? Number 5: Hak Young is daunted by that monthly payment amount and is…
You take out a consumer loan at your credit union for new insulated windows for your house. The total installed cost is $8,900 of which you pay 16% down. The balance is to be paid in 48 equal monthly payments with a finance charge equal to 6.8% add-on interest on the outstanding balance. Find the monthly payment. OA S255,14 O B. S171.39 OC. 5198.11 O D. $211.27 QUESTION 7 Find the minimum cash investment for a FHA loan on a home in a low closing cost state costing $107,450 with closing costs of $650. OA $2960,18 OB. 53712.32 ০s3223.50 OD.53175.07
Your bank is offering to finance your new car purchase for 7 years at 14.95%. If you were to borrow $27,000 for the car, what would your payment be? $489 $520 $425 $460 $469

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS