21.   You can buy a car advertised for $12,000 on the following terms: (a) pay $12,000 and receive a $1,000 rebate from the manufacturer, or (b) pay $250 a month for 4 years, for total payments of $12,000, implying 0% financing. Which is a better deal if the interest rate is 1% per month?

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A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: We have a mortgage transaction on a home. We have to find some amounts based on the mortgage.

Q: A Chevrolet Sonic Hatchback costs $14,375.00. With a 7% down payment, you can have an amortized loan…

A: Initial cost of car = $14,375 Down payment = initial cost of car * 7% = 14,375 * 0.07 = $1006.25…

Q: A company has the following payment options to settle a loan: ■ Option A: To pay $19,000 today, or ■…

A: The question requires us to suggest a better payment option to settle the loan among the 2 given…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: Assuming that the dealership offers you 5-year loan at 4.7% compounded monthly, what payments would…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: You are going to buy a home, and will be taking out a home loan for $275,000. The loan will be a…

A: Amount of home loan is $275,000 Time period is 30 years Interest rate is 7.9% compounded monthly To…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A:

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Loan Amortization: It refers to the process of paying off the loan in equal periodic payments.…

Q: Your uncle will sell you his bicycle shop for $255,000, with "seller financing," at a 6.0% nominal…

A: The objective of the question is to calculate the equal monthly payments for a loan of $255,000 with…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that…

A: Compound = Monthly = 12Present Value = pv = $90,000Time = t = 20 * 12 = 240Interest rate = r = 7 /…

Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…

A: The financed car loan requires a 10% down payment, which is: $9500 x 10% = $950 So, the amount…

Q: Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The…

A: It is given that, the price of the car is $57,000 and the down payment is $10,000.So, the loan…

Q: You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount…

A: PMT is the periodic payment.

Q: You want to buy a new sports coupe for $30,000, and the finance office at the dealership has quoted…

A: in monthly payment, borrower pay the both interest and loan payment each month.  after end of the 60…

Q: 3. You have $3000 for a down payment on a car that cost $28,900, Which of the following will…

A: It is said that it is not so difficult to procure a loan than to maintain and balance its…

Q: You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted…

A: Compound = n = Monthly = 12Present Value = pv = $77,500Interest rate = r = 5.9 / 12Time = t = 48

Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Comp parts (a) through…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: A borrower is purchasing a property for $200,000 and can choose between two possible loan…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…

Q: 5) You are considering buying a Chevy Cruze. The sticker price is $15,000 and you have $2,000 to put…

A: Car price = $15,000Down payment = $2,000Interest rate = 10%Number of years = 5 years

Q: Suppose that you borrow $17,000 for three years at 8% toward the purchase of a car. Use PMT= The…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a)…

A: We need to use loan amortisation formula to calculate monthly payment of loan. The formula is PMT…

Q: The present value price of a car you would like to purchase today is $17,990. You are approved for a…

A: In this question one has to solve the monthly payment. Monthly payment can either be found out by…

Q: You want to buy a new sports coupe for $75,400, and the finance office at the dealership has quoted…

A: The idea of figuring out a loan's monthly payment and effective annual rate (EAR) is the foundation…

Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Down payment: When an asset is bought or a loan is taken, there would be some token amount that…

Q: 13. If you botrow $1823 and pay back $2,728 in three years, what annual rate of interest are you…

A: Time Value of Money is a fundamental financial concept that recognizes the idea that the value of…

Q: consider purchasing a car that has a price of $18,700. You make payments for 6 years at an APR of…

A: A loan is a sum of money that is borrowed from a lender, with the agreement to repay the principal…

Q: a. How much is the monthly loan repayment amount? b. If you double your loan repayment each month…

A: The amount borrowed from any financial institution or an individual is known as loan. Borrower needs…

Q: You want to buy a $15,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula  EMI = P × r(1 + r)n…

Q: A. If i buy a car from a dealership for $27000 with 2.5% paying monthly for a total of 3 years how…

A: Future value :— It is the value of present money in the future date.    Future value = Present Value…

Q: Suppose you want to borrow $20,000 for a new car. You can borrow 8% per year, compounded 8 monthly…

A: A monthly payment on a loan is a fixed amount of money that a borrower is required to repay to the…

Q: Suppose you want to buy a $143,000 home. You found a bank that offers a 30-year loan at 3.9% APR.…

A: Information Provided: House price = $143,000 Loan period = 30 years Interest rate = 3.90%

Q: To repay a $35,000 loan you will make 30 equal annual payments (starting one year from today) of…

A: Here,LoanAmount is $35000Number of Annual Payments is 30Annual Payment is $4,998.10

Q: You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula  EMI = P × r(1 + r)n…

Q: urchase price of an item is $15,000. You decide to buy it using an installment plan. You put 20%…

A: The borrowing amount depends on the down payment and price of item and both are related to each…

Q: 000 Suppose that you decide to borrow Installment Loan A: three-year loan at 6.3% Installment Loan…

A: Vehicles are purchased on monthly payments and these monthly payments carry the payment for interest…

Q: how much must he put down? (Round your answer to the nearest cent.)

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…