Grandin wishes to take out an installment loan to finance the purchase of a small antique dining set costing $75,500. Her loan requires a 22.5% down payment and equal payments of $2,567 for 40 months. What is the amount of the finance charge on this loan? $40,880.64$42,995.27 $44,167.50$45,650.00

Grandin wishes to take out an installment loan to finance the purchase of a small antique dining set costing $75,500. Her loan requires a 22.5% down payment and equal payments of $2,567 for 40 months. What is the amount of the finance charge on this loan? $40,880.64$42,995.27 $44,167.50$45,650.00

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Related questions

Q: Mayesha purchased a large screen TV for $4,000 and can pay it off in ten months with an add-on…

A: P = $ 4000 r = .135 t = (10/12) years

Q: Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term,…

A: Borrowing = 280,000 Lender A Rate = 4.59% N = 30 years Lender B Rate = 3.29% N = 20 years

Q: Patricia has borrowed an amount of Sh. 4 million to start a boutique business in Kileleshwa . The…

A: A loan amortization schedule is used to indicate the amount of principal and interest paid for each…

Q: Lupe made a down payment of $8000 towards the purchase of a new car. To pay the balance of the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: Present Value = 18,420 Future Value = 20,000

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

A: Amount to borrow is $6,000 Dealer -1 Monthly Payment are $193.60 Loan tenure is 3 years APR of 10%…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Home cost = $260,000 Maturity = 15 years Interest rate = 8% Deposited amount = $20,00 Expenses:…

Q: Chuck Ponzi has talked an elderly woman into loaning him $35000 for a new business venture. She…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,500. Her…

A: Introduction: Installment: Its a method of payment paying monthly , semi annually , annually etc.

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,700. Her…

Q: PLEASE SHOW YOUR STEP-BY-STEP SOLUTION. Liam paid ₱68,000 to a money lending company after one and a…

A: Maturity Amount = Principal x (1+i)n Where, i = interest rate n = number of quarters

Q: Karolyn takes out an installment loan to finance the purchase of a violin costing $12,750. Her loan…

A: given, price = $12750 downpayment = 10.625% pmt = $375 n = 48

Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…

A: Principal amortization means an amount of principal borrowing payment included in the instalment.…

Q: Calculate the total deferred payment price.

A: Total Deferred Payment Price: It refers to the total amount paid on the loan borrowed by the…

Q: May finances a refrigerator for $1,250 by taking out an installment loan for 48 months. The payments…

A: Given, The total number of months the payment has been made = 35 Total payment made so far =…

Q: Find the closing costs (in $).

A: Closing Cost: It is settlement costs. It is the fees which is paid when obtaining loan and…

Q: Grandin wishes to take out an installment loan to finance the purchase of a small antique dining set…

A: Amount of Finance Charge = Total Amount to be paid for Loan - Present Value of loan

Q: Amy bought a new car for $38,000$⁢38,000. She paid a 20%20% down payment and financed the remaining…

A: [P x R x (1+R)^N]/[(1+R)^N-1],

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…

A: Given: Maturity Value "M" = P405630 Proceeds = 83.84%*P405630 = P340080.192 Number of years = 12…

Q: Vivian plans to replace all four air-conditioners in her home. The total cost is $70,000. The loan…

A: Monthly flat rate is 0.8% Administration fee is $250 Down payment is $10,000 Time period is 2 years…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,100. Her…

A: given that, cost of pickup truck = $14100 downpayment = 25% montly payments = $281 number of months…

Q: Joan Hart borrowed $9,800 to travel to France to see her son Dick. Joan’s loan was to be paid in 50…

A: A loan rebate signifies the amount saved by paying a loan early. The amount is generally saved from…

Q: Curtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank,…

A: Given, Price of property is $230,000. Term of loan is 20 years. Interest rate is 9% per year.

Q: Diane Wallace bought a living-room suite on credit, signing an installment contract with a finance…

A: Principal amount refers to the amount of money that is borrowed from the lender and is also the…

Q: After paying a 20% deposit on a $300,000 home, David and Kennah finance the rest of the home cost…

A: 1. The total sum of the monthly payment will be calculated after calculating the monthly payment and…

Q: Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer…

A: A deferred annuity is the annuity plan under which payment is accumulated for a certain period and…

Q: Franki finances a motor home for $44,700 by taking out an installment loan for 36 months. The…

A: Loan carry interest rate that are to be paid by monthly payment.

Q: Calculate the the total deferred payment price.

A: Deferred Payment: Deferred payment is an amount payable in the future course of action for the goods…

Q: Marisol finances a sports car for $27,700 by taking out an installment loan for 36 months. The…

A: Amount financed = $27,700 Number of instalments = 36 Monthly payment = $998.61 Payment made = 21…

Q: Linda borrowed money from a bank to buy a fishing boat. She took out a personal, amortized loan for…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: After paying a 20% deposit on a $300,000 home, David and Kennah finance the rest of the home cost…

A: Solved using Financial Calculator PV = 256,228 N = 30 * 12 = 360 I/Y = 2.73/12 = 0.2275 CPT PMT =…

Q: The Fly-by-Night finance company advertises a “bargain 6%plan” for financing the purchase of…

A: Effective interest rate is the rate that is paid to a loan or earned on an investment as a result of…

Q: To purchase a car, Sarah took out a 60-month loan for $33,000 with a 7.6% annual interest rate.…

A: If a loan is repaid with regular equal payments, each payment consist principal part and interest…

Q: Robin has taken out a loan for $485,000 from Mammon Financial, Inc. that provides pay off the…

A: in this problem we have to find out present value FACTOR and from that we can find out period…

Q: Lense is buying new furniture at Discount Furniture Mart because they are offering to finance her…

A: The interest paid will be the total amount paid over 24 months less the bill amount.

Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…

A: The question is based on the concept of Financial Management.

Q: Gabrielle obtained a business loan of $245,000.00 at 4.03% compounded semi-annually, how much should…

A: Loans are paid by the periodic payments that carry the payment for interest and payment for…

Q: Michelle Passmore is purchasing a $25,000 automobile, which is to be paid for in 60 monthly…

A: A loan is an agreement between two parties where a sum is forwarded in exchange for periodic…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,900. Her…

A: Deferred payment price - these are the payments that are partially or wholly postponed for financial…

Q: Mayesha purchased a large screen TV for $4,000 and can pay it off in ten months with an add-on…

A: The add-on method is used to calculate the monthly payments that are the finance charges for the…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Closing cost: it's a cost or expenses which is related to real estate. a charges or expenses paid…

Q: Chuck Ponzi has talked an elderly woman into loaning him $35,000 for a new business venture. She…

A: Interest-only is the method of repayment of loan under which only interest is paid every year and…

Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

A: Given two loan options. We have to find the total payments made for both options and select the one…

Q: mary, a college student, needs to borrow $8000 today for her tuition. She agrees to pay back the…

A: Loan is referred as the amount of fund is given to a party in exchange of repayment of principal…

Concept explainers

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.

Question

$40,880.64$42,995.27 $44,167.50$45,650.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Grandin wishes to take out an installment loan to finance the purchase of a small antique dining set costing $79,500. Her loan requires a 22.5% down payment and equal payments of $2,577 for 40 months. What is the amount of the finance charge on this loan? a. $38,180.64 b. $40,295.27 c .$41,467.50 d. $42,950.00
Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, and Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find the 3. amount of the loan payment for each. Round your answer to the nearest whole dollar.
Ms. Madison has an existing loan with payments of $782.34. The interest rate on the loan is 10.5% and the remaining loan term is 10 years. The current balance of the loan is $57,978.99. The home is now worth $120,000 and Ms. Madison would like to borrow an additional $30,000 through a wraparound loan which would increase the debt to 87,978.99. Terms of the wraparound loan are 12.25% interest with monthly payments for 10 years. What is the incremental cost of borrowing the extra $30,000 through a wraparound loan? 13.41% 11.38% 12.96% 15.47%
please answer with correct calculations and explanations. QUESTION: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a year mortgage at 8% and 4 discount points. Kari made a deposit of $30,000 (applied to the doen payment) when the sales contract was signed. Kari also has three expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).
Jane Zahrley’s request for a five-year automobile loan for $39,000 has been approved. Reston Bank will require equal monthly installment payments for 60 months. The bank tells Jane that she must pay a total of $5,500 in finance charges. What is the loan’s APR?
Jill Walsh purchases a bedroom set for a cash price of $3,920. The down payment is $392, and the monthly installment payment is $176 for 24 months. Find the amount financed the finance charge The deferred payment price. What will be the APR for this auto loan?
Zoey Bettincourt gets a $400,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest rate of 2.75%. Her initial monthly payment is $1,632.96. After 5 years, the interest rate on her loan changes to 3.5%. Calculate her new monthly payment (in dollars) in year 6 of the loan. (Round your answer to the nearest cent. Assume the length of the loan is 30 years.)
Boyd purchases a snow blower costing $1,742 by taking out a 12.5% add-on installment loan. The loan requires a 35% down payment and equal monthly payments for 2 years. How much is the finance charge on this loan? O $217.75 O $283.08 O $435.50 O $609.70
Carol borrows $30, 000 from the bank. For a six-year loan, the bank requires annual end-of-year payments of $5, 878.05. The annual interest rate on the loan is?
Lupé made a down payment of $7000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 9%/year compounded monthly, Under the terms of her finance agreement she is required to make payments of $410/month for 24 months. What in the cash price aof the car? (Round your answer to the nearest cent.)
Hazel has taken out a 40,000 loan that requires quarterly payments of $2300 over over five years. What is the APR for this loan how do I answer this using the TVM function
Karolyn takes out an installment loan to finance the purchase of a violin costing $14,750. Her loan requires a 10.625% down payment and equal monthly payments of $355 for 48 months. Calculate the the total deferred payment price. $22,360.33 $15,960.67 $21,256.62 $18,607.19