A computer chip designer purchased a car for $59,476.47, which includes sales tax and registration. The designer obtains a 5-year loan for the total amount at an annual interest rate of 6.3% compounded monthly. The designer will make monthly payments. The payments calculation for this type of loan uses the formula for the present value of which type of annuity? Given the formula for the payment amount of annuity where PMT is the payment amount in dollars, PV is the present value in dollars, n is the number of payments, and i is the interest rate per period. PMT= ?Determin the following values.PV= $n= i= What is the designer’s monthly payment? (Round your answer to the nearest cent.) ASK YOUR TEACHERPRACTICE ANOTHERA computer chip designer purchased a car for $59,476.47, which included sales tax and registration. The designer obtains a 5-year loan for the total amount at an annual interest rate of6.3% compounded monthly. The designer will make monthly payments. The payment calculation for this type of loan uses the formula for the present value of which type of annuity?due annuityO ordinary annuityGive the formula for the payment amount of this type of annuity where PMT is the payment amount in dollars, PV is the present value in dollars, n is the number of payments, and i is the interest rateper period.PMT=Determine the following values.PV = $n =What is the designer's monthly payment? (Round your answer to the nearest cent.)$Need Help? Read It

Loan and its repayment: A loan taken can be repaid in several ways. Loans taken to purchase…

ASK YOUR TEACHER A computer chip designer purchased a car for $59,476.47, which included sales tax and registration. The designer obtains a 5-year loan for the total amount at an annual interest rate of 6.3% compounded monthly. The designer will make monthly payments. The payment calculation for this type of loan uses the formula for the present value of which type of annuity? due annuity O ordinary annuity PMT= Give the formula for the payment amount of this type of annuity where PMT is the payment amount in dollars, PV is the present value in dollars, n is the number of payments, and i is the interest rate per period. Determine the following values. PV = $ n = 1 = What is the designer's monthly payment? (Round your answer to the nearest cent.) $ X Need Help? TOTES Read It PRACTICE ANOTHER

ASK YOUR TEACHER A computer chip designer purchased a car for $59,476.47, which included sales tax and registration. The designer obtains a 5-year loan for the total amount at an annual interest rate of 6.3% compounded monthly. The designer will make monthly payments. The payment calculation for this type of loan uses the formula for the present value of which type of annuity? due annuity O ordinary annuity PMT= Give the formula for the payment amount of this type of annuity where PMT is the payment amount in dollars, PV is the present value in dollars, n is the number of payments, and i is the interest rate per period. Determine the following values. PV = $ n = 1 = What is the designer's monthly payment? (Round your answer to the nearest cent.) $ X Need Help? TOTES Read It PRACTICE ANOTHER

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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1. Exercise One: Jessica decides to take a $25,000 to help her cover her tuition expenses. The tenor of the loan is 10 years, and the interest rate is 6.75%. Repayments will be made on a monthly frequency. Based on the aforementioned information, and the material covered in class, (a) use the PMT function in Excel to find the fixed total payment, (b) verify your answer from (a) by programming the present value annuity formula as shown in class, (c) create an amortization schedule for this loan, (d) create a bar chart showing the Fixed Total Payment, Interest Paid, and Principal Paid.
TERMINAL ACTIVITY PROBLEM SET Read and examine the following real-life applications of deferred annuity. 1. 2. Identify the given quantities and answer the questions that follow. Derek purchased a laptop through the credit cooperative of their company. The cooperative provides an option for a deferred payment. Adrian decided to pay after 4 months of purchase. His monthly payment is computed as P3,500 payable in 12 months. How much is the cash value of the a) What is the interest rate? b) Find the periodic rate. c) What is the deferral period? laptop if the interest rate is 8% convertible monthly? d) How much is the cash price of the laptop? Ambitžon and Passion, Our Mission Partnership Your
Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.9% Installment Loan B: five-year loan at 4.8% P Use PMT = to complete parts (a) through (c) below. - nt 1- 1+ a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 1- a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) MacBook Air
You are buying your first car and have taken out a loan to fund the purchase. The terms of the loan are provided below: Loan amount $ 20,000 Annual interest rate 5% Loan type Amortizing Loan duration in years 5 Repayment frequency Annual repayments First repayment 1 year’s time c) Calculate the following: i) The annual loan repayment. ii) The total amount of dollar repayments to be made over the duration of the loan. iii) The total interest in dollars to be paid over the duration of the loan
MY NOTES ASK YOUR TEACHER Teal and Associates needs to borrow $65,000. The best loan they can find is one at 11% that must be repaid in monthly installments over the next years. How much are the monthly payments? (a) State the type. O future value O ordinary annuity O amortization O sinking fund O present value (b) Answer the question. (Round your answer to the nearest cent.) 2$ Need Heln? Read It
You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?
Find the monthly house payment necessary to amortize the following loan. 9) In order to purchase a home, a family borrows $121,000 at 3.0% for 30 yr. What is their monthly payment? Round the answer to the nearest cent.
PA Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $217,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. Complete parts (a) through (e) below. a. Find the required down payment. $ b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? S (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). S (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. (Round to the nearest dollar as needed.)
Gmail News Translate Post Attendee - Zo... A new car costing $28,000 can be financed with a four-year loan at 6.12%. A three-year-old model of the same car costs $16,000 and is financed with a four-year loan at 6.86% with monthly payments of $382.10. Use the present value of an annuity formula to find the difference in monthly payments between financing the new car and the used car. Rund to the nearest cent. ni pmt 1 P- $ 282.58 O$ 277.02 O$ 382.10 O$ 166.11
Assume you bought a car using a loan that requires payments of $3,000 to be made at the end of every yearfor the next three years. The loan agreement indicatesthe annual interest rate is 6 percent. Which table in thisappendix would you use to calculate the car’s equivalentcost if you were to pay for it in full today?a. Table C.1 (Future Value of $1)b. Table C.2 (Present Value of $1)c. Table C.3 (Future Value of Annuity of $1)d. Table C.4 (Present Value of Annuity of $1)
Considering the Annuity Formula: In Western countries a client who intend to buy a house apply for an annuity1 housing loan attheir bank. After the pay-out of the debt amount the client pays a constant (annual) amount(interest and repayment of debt) to the bank for e.g. 25 years. The client is owner of thehouse and owes money to the bank, after 25 years (s)he is free of debt and still owns thehouse. Islamic law generally prohibits a charge of interest so that Islamic banks offer the followingIslamic housing “loan contract” (called “Islamic loan”):1. The house is bought by the bank in t = 0 so that she is owner of the house.2. The client pays a periodic rent to the bank for a defined period of 25 years.3. After 25 years the bank donates the house to the client (“for free”) if the rent wasregularly paid (without any outstanding payments). Question 1: Please specify all possible parameters (i.e. variables) on an Islamic loan contract so thatan Islamic bank can calculate the conditions of…