Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of $5,000. The remaining $23,000 will be financed by the dealer. The dealer computes your monthly payment to be $1540, for 60 months of financing. What is the dealer's annual rate of return on this car loan?
Q: You want to buy a boat, and a local bank will lend you $25,000. The loan will be fully amortized…
A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…
Q: Suppose you have selected a new car to purchase for $19,500. If the car can be financed over a…
A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.
Q: Suppose on January 1 you deposit $1000 in an account that pays a nominal, or quoted, interest rate…
A: Future value is the value of an asset that grows after a specific period of time. The future value…
Q: e net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years.How much was…
A: Amortization is the allocation of the cost of an intangible asset over its life. The maximum life of…
Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…
A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: Given Information in the Question:- Loan Amount is $20,000 Loan Period is 5 Years or 60 months…
Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…
A: The loan amount would be the remaining amount after deducting the down payment from the purchase…
Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000…
A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: Loan amount =26100 Financial charges =9360 Monthly payment =985 Total =36 months Monthly financial…
Q: Stan Slickum has a used car that can be bought for $8,000 cash or for a $1,000 down payment and $800…
A: Given information: Payment is $800, Purchase price is $8,000 Down payment is $1,000 Number of months…
Q: Suppose you buy a $40,000 car and you 'put down' $5,000 and finance the rest for 72 months at 3.75%…
A: Solution:- When a loan is taken, the amount can be repaid as a lump sum payment or in instalments.…
Q: Today you purchase a previously owned Tesla Model 3 for $40,000. You make a down payment of $5,000…
A: Given The purchase price is $40,000 Down payment $5,000 Rate is 0.25% per month payable in 60…
Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…
A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…
Q: a. A consumer loan worth ₱75,000 is to be repaid in two years at 6% compounded monthly. What is the…
A: a) Loan (L) = P 75000 n = 2 years = 24 months r = 6% per annum = 0.5% per month Let A = Monthly…
Q: A student is buying a new car. The car’s price is $37,500, the sales tax is 6%, and the title,…
A: Formula to calculate the monthly payments is: A = P[i(1+i)^n]] (1+i)^n - 1 =P(A/P,i,n)
Q: How much money will the bank loan you? How much can you offer for the house?
A: Loan payments: These are payments made by the borrower to the lender of the loan. These payments…
Q: Suppose you wanted to buy a $200,000 house. You have $30,000 cash to use as the downpayment. The…
A: Given PV = amount of loan = 200000-30000 = $ 170000 r = rate of interest = 6/12 = 0.05 n = number of…
Q: You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…
A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…
Q: A customer wants to buy a house with a cash value of 1,000,000 riyals, and the customer will pay 40%…
A: Future value is the value of the current assets or some amount that is invested today and amount…
Q: What is the monthly loan payment?
A: A personal loan is an unsecured loan and can be easily received without a need to pledge collateral…
Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…
A: For determination of equal monthly payment(PMT), we need to use loan amortisation formula below. PMT…
Q: Suppose you purchase a car for a total price of $22,565 including taxes and license fee, and finance…
A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…
Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…
A: Negative amortization is where the principal to be paid increases due to non payment of interest due…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…
A: Loan is one of the alternative of financing. An individual or organization who is taking the loan…
Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…
A: Excel formula.
Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…
A: Loan amount is the amount borrowed from the financial institutions such as banks, corporate houses,…
Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…
A: the monthly loan amount will be = p*[ r(1+r)n/(1+r)n-1]…
Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
Q: Suppose that you decide to buy a car for $28,635, including taxes taxes and license fees. You saved…
A: Car cost=28635 Saved =7000 period (4*12) = 48 interest (6.87%/12) = 0.57% G H…
Q: Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a…
A: Monthly payment can be calculated using the present vale of annuity formula. Present value of…
Q: You are buying vehicle for $20,000 and are paying $2,000 as a down payment. You have negotiated a…
A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…
Q: You are going to buy new machinery worth$36,200. The dealer computes your monthly paymentto be…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you…
A: We use PMT function to calculate annual payments
Q: You buy a new truck for your trailer that costs $55,000. What are your monthly payments for a 5 year…
A: Equated monthly installments are equal installments that involve both principal and interest…
Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: A loan is a method through which an individual can borrow money from a financial institution for…
Q: You want to borrow $115,000 from your local bank to buy a new sailboat. You can afford to make…
A: Annual Percentage Rate is the annual rate of interest charged from borrowers for the payment to…
Q: You go to a phone dealer to buy a new car for 22,000 pesos financed at 3.4% APR, compounded monthly,…
A: An annuity loan occurs when an annuitant borrows money against the value of his or her annuity…
Q: You want to buy a car, and a local bank will lend you$40,000. The loan will be fully amortized over…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: mith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim…
A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…
Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…
A: Given:
Q: Suppose you are in the market for a new car worth $18,000. You are offered a deal to make a $1,800…
A: Loan amortization schedule refers to the presentation of complete loan payments over the period of…
Q: You buy a car for $34,000. You pay $10,000 down and finance the rest at 3% monthly over five years.…
A: Value of Car is $34,000 Down Payment is $10,000 Loan Amount (PV) is: Interest Rate (Rate) is 3%…
Q: You are interested in a car which costs $25,000. You have a $2000 down payment, and you have a found…
A: A loan is amortized by paying equal monthly installments comprising Principal and interest. Total…
Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of $5,000. The remaining $23,000 will be financed by the dealer. The dealer computes your monthly payment to be $1540, for 60 months of financing. What is the dealer's annual
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- You are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55 for 60 months of financing. What is the dealer's effective rate of return on this loan transaction?Suppose you want to buy a car. You have surveyed the dealers' newspaper advertisements, and the one shown has caught your attention. You can afford to make a down payment of $2,678.95, so the net amount to be financed is $20,000.(a) What would the monthly payment be?(b) After the 25th payment, you want to pay off the remaining loan in a lumpsum amount. What is this lump sum?You are buying vehicle for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What are the monthly payments you must make on this loan?
- A car dealer offers to buy your car for $9,500 so that you can purchase a new one. If your monthly payment is $464.23 with an annual interest rate of 3.9% and you have 20 more payments remaining, is the present value of your car loan more or less than the amount the dealer is offering? How much Less?You can afford to pay $560 each month for a new car. The dealership offers you a 5-year loan at 6.4% interest, compounded monthly. Which of the following formulas would be used to compute the amount of money you can afford to borrow in order to purchase a new car?Suppose you purchase a car for a total price of $24,790 including taxes and licensee and finance that amount for five years at an annual interest rate of 6%. (Round your answer to the nearest cent) Find the monthly payment? What is the total amount of interest paid over the term of the loan?
- you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per month. The bank offers three choices for the loan: a four-year loan with an APR of 7%, a five- year loan with an APR of 7.5%, and a six-year loan with an APR of 8%. Which option best meets your needs, assuming you want to pay the least amount of interest?Suppose you purchase a car for a total price of $25,445, including taxes and license fee, and finance that amount for 4 years at an annual interest rate of 8%. Please provide step by step to find the monthly payment and what is the total amount of interest paid over the term of the loan? ThanksYou want to buy a $160,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.65% interest for the rest. The bank will charge 2 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? $ c) What will be the amount charged for 2 points? d) Find the amount of the monthly payment. $
- You are going to buy new machinery worth$36,200. The dealer computes your monthly paymentto be $735.25 for 72 months of financing. What is thedealer’s effective rate of return on this loan transaction?The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is $36,000 per year or $3,000 per month. Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car. What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment over 4 years, and 28% for the 15-year mortgage payments?You are thinking about buying a car, and a local bank is willing to lend you $20,000 to buy the car. Under the terms of the loan, it will be fully amortized over 5 years (60 months), and the nominal rate of interest will be 12 percent, with interest paid monthly. What would be the monthly payment on the loan? What would be the effective rate of interest on the loan?