An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at the end of each month, for the first two years for a car priced at $12,000. The APR on the vehicle is 5.04% and the total term of the loan is 5 years. What is the monthly payment for the remaining three years? Interest is payable during the entire five year period.

A local finance company quotes an interest rate of 15.6 percent on one- year loans. So, if you borrow $36,000, the interest for the year will be $5,616. Because you must repay a total of $41,616 in one year, the finance company requires you to pay $41,616/12, or $3,468.00 per month over the next 12 months. a. What rate would legally have to be quoted? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the effective annual rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. APR b. EAR % %

You currently have two loans outstanding: a car loan and a student loan. The car loan requires that you pay $308 per month, starting next month for 35 more months. Your student loan requires that you pay $132 per month, starting next month for the next 105 months. A debt consolidation company gives you the following offer: It will pay off the balances of your two loans today and then charge you $455 per month for the next 48 months, starting next month. If your investments earn 3.55% APR, compounded monthly, how much would you save or lose by taking the debt consolidation company’s offer? If you lose, state your answer with a negative sign (e.g., -25,126)

Niagular Corp. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 11% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 8% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day year, what will be the monthly payment for each loan for November? (Hint: Remember that November has 30 days.) Value Simple interest monthly payment Add-on interest monthly payment Choose the answer that best evaluates the following statement: Mall Toys Co1 needs to borrow $10,000,000. The company has been offered both simple interest and add-on interest loans. The add-on interest loan has a significantly lower interest rate than the simple interest loan. O The company should accept the add-on interest loan, because it will be paying less money in interest due to the lower interest rate. O The company needs to…

You have to buy a new copier. The cost of the copier is​ $2,075​, plus ​$410 per year in maintenance costs. The copier will last for five years.​ Alternatively, a local company offers to lease the copier to you and do the maintenance as well. If your discount rate is 6.4 % what is the most you would be willing to pay per year to lease the copier​ (your first lease payment is due in one​ year)?

A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate of 11.2% for 18 months, find the monthly payments on your loan. How much will you have paid in interest over the course of the loan? Repayment amount = Interest paid

Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7.75% interest. (Round your answers to the nearest cent.) (a) Find the size of the monthly bank payment.$ (b) Prepare an amortization schedule for all four months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment BalanceDue 0       $  1 $  $  $  $  2 $  $  $  $  3 $  $  $  $  4 $  $  $

The executive of a label is looking to purchase a new rental for $3.9 million. Financing is offered for a 3.9% rate over 6 years. If $800,000 is place down towards the entire purchase, what will the monthly payment for the loan be? Use Excel functions to complete the calculation.

You want to buy a new sports coupe for $75, 300, and the finance office at the dealership has quoted you a loan with an APR of 7.7 percent for 36 months to buy the car. What will your monthly payments be?

An automobile with a total transaction price of $20,000 with a down payment of 20% is being financed for 48 months. Banks and credit unions require a monthly payment of $400.36. What is the APR for this auto loan? Use the table in the Business Math Handbook