Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Please help with 7
### Financing for Toyota Prius Purchase A car dealership provides a financing plan for the purchase of a Toyota Prius. The offer includes a monthly payment of $21.60 for every $1,000 borrowed, spread over a period of 48 months. Below is the table that needs to be filled with the monthly payments for different borrowed amounts. #### Table: Loan Amounts and Monthly Payments | Amount Borrowed | Monthly Payment | |-----------------|-----------------| | $1,000 | $21.60 | | $2,000 | | | $3,000 | | | $5,000 | | | $6,000 | | | $9,000 | | | $12,000 | | --- ### Questions 1. **Calculate the Borrowed Amount:** - If your monthly payment is $356.40, determine the total amount borrowed. **Answer:** ____________________________ 2. **Determine the Monthly Payment:** - What will your monthly payment be if you borrow $11,500? **Answer:** ____________________________ 3. **Calculate the Total Repayment:** - If you borrow $11,500, calculate the total amount you will repay over the term of the loan. **Answer:** ____________________________ This exercise helps in understanding the calculation of loan payments and total repayment over time.
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Transcribed Image Text:### Financing for Toyota Prius Purchase A car dealership provides a financing plan for the purchase of a Toyota Prius. The offer includes a monthly payment of $21.60 for every $1,000 borrowed, spread over a period of 48 months. Below is the table that needs to be filled with the monthly payments for different borrowed amounts. #### Table: Loan Amounts and Monthly Payments | Amount Borrowed | Monthly Payment | |-----------------|-----------------| | $1,000 | $21.60 | | $2,000 | | | $3,000 | | | $5,000 | | | $6,000 | | | $9,000 | | | $12,000 | | --- ### Questions 1. **Calculate the Borrowed Amount:** - If your monthly payment is $356.40, determine the total amount borrowed. **Answer:** ____________________________ 2. **Determine the Monthly Payment:** - What will your monthly payment be if you borrow $11,500? **Answer:** ____________________________ 3. **Calculate the Total Repayment:** - If you borrow $11,500, calculate the total amount you will repay over the term of the loan. **Answer:** ____________________________ This exercise helps in understanding the calculation of loan payments and total repayment over time.
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