consider purchasing a car that has a price of $18,700. You make payments for 6 years at an APR of 2.2%. If you paid a 10% down payment, what would you need to take out for their loan

Q: Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000…

A: Car Value = $ 26,635Down payment =$ 7000Loan Amount = Car Value - Down paymentLoan Amount = $ 26,635…

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

Q: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: A Chevrolet Sonic Hatchback costs $14,375.00. With a 7% down payment, you can have an amortized loan…

A: Initial cost of car = $14,375 Down payment = initial cost of car * 7% = 14,375 * 0.07 = $1006.25…

Q: Suppose you can afford to pay $ 250 a month for 8 years towards a new car with no down payment. If…

A: Given details are : Monthly payment = $250 Time period = 8 years Interest rate = 4.75% We need to…

Q: You want to buy a $18,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Monthly installment is that amount which is paid every month it's includes the interest and…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: you want to buy a car for $8300 with $360 monthly payments for 4 years, what is the annual interest…

A: Interest rate is the rate which the customer would have to pay on the periodic payment of the…

Q: You can afford monthly payments of $400 per month. If you are financing a car at 10% APR and 60…

A: A car loan is a type of personal loan specifically designed for purchasing an automobile. Borrowers…

Q: You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many…

A: Hello. Since your question has multiple sub-parts, we will solve first the three sub-parts for you.…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: You wish to buy a car that has a monthly payment of $250 and with a down payment of $1000. You find…

A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: A loan refers to a contract between a borrower and a lender where a sum is exchanged on the promise…

Q: ou are taking a car loan of 100000, for 5 years and monthly payment of 1648, the interest rate is…

A: Loan is the present value of payment made for the loan based on the time and interest rate of the…

Q: sidering buying a new car. The sticker price is $15, ment. If you can negotiate an annual interest…

A: In this we need to calculate present value factor and get monthly payment.

Q: you decide to buy a car for $25,635, including taxes and license fees. You saved $6000 for a down…

A: Loans are paid by equal monthly installments and these monthly installment carry payment for…

Q: You want to buy a car for $25000 that has to be paid in 5 years. If the car dealer agrees to finance…

A: Working note:

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $7000…

A: Amortization of a loan refers to the process of gradually paying off a debt or loan over a fixed…

Q: You buy a car with a down payment of $1000 and $200 per month for 3 years. a) If the interest rate…

A: Loan amount is the present value of monthly payment based on time value of money and intrest rate of…

Q: You want to buy a car. The loan amount will be $25,000. The company is offering a 4% interest rate…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow…

A:

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: Suppose you have a student loan of ​$50,000 with an APR of 6​% for 30 years.   a. What are your…

A: Here,Loan Amount is $50,000APR is 6%Time Period is 30 years

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

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: ave selected a new car to purchase for $19,500. If the car can be financed over a period of 4 years…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: You want to buy a new car. You can afford payments of $425 per month and can borrow the money at an…

A: The objective of this question is to find out the total amount that can be borrowed given the…

Q: You can afford a $300 per month car payment. You've found a 5 year loan at 7% interest. How big of a…

A: The question is based on the concept of repayment of loan at fixed interval and regular payment .the…

Q: Suppose you want to save in order to purchase a new car. Take the APR to be 3.6%. If you deposit…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: You want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan…

A: A mortgage refers to a loan against the purchase of a house. Mortgage repayment requires the…

Q: Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a)…

A: We need to use loan amortisation formula to calculate monthly payment of loan. The formula is PMT…

Q: You want to buy a car and have negotiated a sale price of $50,000. You can get a loan from your…

A: Present value = pv = $50,000 Compound = monthly = 12 interest rate = r = 6 / 12 = 0.5% Time = t = 6…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: You are looking to buy a car. You can afford $460 in monthly payments for four years. In addition to…

A: APR = 7.25% or 0.0725Monthly rate (r) = 0.0725 / 12 = 0.00604166666Monthly payment (PMT) =…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.