A finance company paid a merchant $3,975 for a conditional sale contract after discounting it to yield 18% compounded monthly. If the contract is for 20 monthly payments of $256.96 following a payment-free period, what is the time interval between the date of sale and the first payment? (Round your answer to the nearest month.) _____ months

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A: The amount financed for the car is approximately $16,900.60. The total interest cost over the 5…

Q: An automobile loan of $15,000 at 12% APR compounded monthly for 36 months requires equal monthly…

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A: Step 1: Calculate the quarterly interest rate.Divide the annual rate by 4= 7.5% / 4 = 1.875%

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A: Total present value of sale = Present value of monthly payment + Present value of interim payment…

Q: A $4,500 loan at 8.4% compounded monthly was settled by a single payment of $5,500 including accrued…

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Q: Your business requests a 3-month loan for 50,000. What will be the interest paid at the end of the…

A: The amount of interest paid is calculated as shown below.

Q: If a firm have contract with customer, they will deliver their goods in one year after every three…

A: Following is the answer to the given question

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A: A loan refers to a contract between two parties where money is forwarded to one party by the other…

Q: nents of $3762.00 today, $2666.00 in 2 years, and $5932.00 in 5 years. When can the contract be…

A: To solve this problem, we'll use the concept of the time value of money and the present value…

Q: A contract requires end-of-month payments of $240 for another 9 1/4 years. What would an investor…

A: > The amount willing to pay for the investment shall be computed by applying the present  value…

Q: A $4,800 loan at 9.0% compounded monthly was settled by a single payment of $5,800 including accrued…

A: Loan amount or Present Value = $4,800Interest rate = 9%Future Value = $5,800

Q: A financial obligation requires payments of $200 today, $250 in three years, and $550 in five years.…

A: The concept of TVM states that the money earned earlier has more value than the same amount earned…

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A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: how long will it take for teh account to be paid off?

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A: PV(rate, nper, pmt, fv) function in excel is used to compute the required present value. Where;rate…

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Q: A loan is offered with monthly payments and a 11.75 percent APR. What's the loan's effective annual…

A: Annual rate (r) =11.75%Number of compounding (n) = 12Required:EAR = ?

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A: Data given: Total months =35 Remaining months = 13 Interest =$2834 Find=Interest refund=?

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A: Loan amount = $171,000Interest =6%Number of years = 5 years

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A: Interest expenses The amount that the borrower pays for the funds borrowed is called the interest…

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Q: Bhupatbhai

A: The objective of this question is to find out the time period in which the loan was settled. This…

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A: The number of months can be calculated with the help of NPER function of Excel.

Q: A gasoline engine is available on instalment basis with a down payment of P 12,423 and P 5,532 at…

A: The cash price can be computed as the sum of down payment and present value of the loan.

Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…

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Q: A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The…

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Q: A 44 month loan has monthly payments of $412. If the interest rate is 8.1%, compounded monthly, find…

A:

Q: A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of…

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Q: Compute the size of the final payment for the following loan. Periodic Payment Payment Period…

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Q: If you buy a computer directly from the manufacturer for $2,668 and agree to repay it in 48 equal…

A: Formula:- Present value of annuity. PV = A * 1 - (1+r)-nr where , PV = Present value of annuity. A…

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A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…