8. A $40,000 car is financed with $5,000 down and a loan at 3.5% interest compounded monthly for5 years.Find the monthly paymenta)ANSANSANSb) Find the total amount paid in 5 years.c) Find the total amount of interest paid in 5 years.d) Find the remaining balance after 2 years.ANSANSe) Find the interest paid after 2 years.

Note: As per guidelines we should attempt only first three subparts in case of question with…

8. A $40,000 car is financed with $5,000 down and a loan at 3.5% interest compounded monthly for 5 years. Find the monthly payment ANS b) Find the total amount paid in 5 years. ANS c) Find the total amount of interest paid in 5 years. ANS d) Find the remaining balance after 2 years. ANS e) Find the interest paid after 2 years. ANS

8. A $40,000 car is financed with $5,000 down and a loan at 3.5% interest compounded monthly for 5 years. Find the monthly payment ANS b) Find the total amount paid in 5 years. ANS c) Find the total amount of interest paid in 5 years. ANS d) Find the remaining balance after 2 years. ANS e) Find the interest paid after 2 years. ANS

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

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Similar questions

7. You borrow $30,000 for 4 years under an amortized loan plan. Its interest rate is 7% APR. How much the principal amount is left at the end of 2nd year?
Please do c and d using factor method
Assuming a 5% (0.05) interest rate, $500 invested today in a savings account today will be worth $525 in one year. What will that amount be in 2 and 3 years, and what is the total interest you will earn at the end of three years. Refer to the video in the information page for assistance in calculating simple interest. Year 2: $445.78 Year 3: $335.29 Total Interest: $98.75 Year 2: $551.25 Year 3: $578.81 Total Interest: $78.31 Year 2: $114.49 Year 3: $122.50 Total Interest: $22.50 Year 2: $222.70
2. Now consider: 4.05% APR on 5 years for $23,000 car a. Estimate the monthly payment (using the average balance method) b. How much would you pay in total for interest?
You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
You have taken out a loan of $23,000 for 4 years with an interest rate of 4% compounded annually. The loan will be repaid by end of year payments. Fill in all the boxes below, and round all entries to the nearest cent. Enter only positive values for ALL ANSWERS. Annual payment: $ Payment Number 0) 1) 2) 3) 4) Total Amount Paid $ 6,336,30 x same as above same as above $ Interest Paid SA SA A +A +A Principal Repaid SA SA +A Outstanding Balance $23,000 SA GA SA
A banks lends a customer OMR 6,000. At the end of 9 years he repays this amount plus interest. The amount he repays is OMR 10,000. What is the interest rate charged by the bank? What sum must be invested now to provide an amount of OMR 18,000 at the end of 15 years if interest is to accumulate at 8% for the first 10 years and 12% thereafter?
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of each year iClick the icon to view some finance formulas. Rate 3% compounded annually Time 16 years Financial Goal $120,000
1. A 2-year loan of $500 is made with 4% simple interest. Find the interest earned. 2. A total of $1,200 is invested at a simple interest rate of 6% for 4 months. How much interest is earned on this investment?
8. A student takes out a loan for $40,000 and loan repayment is to begin after 6 years. Interest during these 6 years is at an annual rate of 3% compounded monthly. How much is owed at the end of 6 years, which is just before the student must begin to make loan repayments. Show final answer rounded to dollars and cents.
3. You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 ? ? 2 ? ? ? 3 ? ? ? 4 ? ? ? 5 ? ? ? PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct. Present Value (PV) PV FV Factor Future Value (FV) ? ? ? PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).

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