Jason bought a car for $40,000 upon graduation from college with an engineering degree and a very good job offer. A down payment of $5,000 was paid by his dad as graduation gift. The rest of the amount was financed with Generous Motors at 6% nominal interest with 60 monthly payments, the first payment which is to start at the end of 13th month. Determine his monthly payment. a) $452.67 b) $583.33 c) $717.38 O d) $752.68 Oe) $828.90

Jason bought a car for $40,000 upon graduation from college with an engineering degree and a very good job offer. A down payment of $5,000 was paid by his dad as graduation gift. The rest of the amount was financed with Generous Motors at 6% nominal interest with 60 monthly payments, the first payment which is to start at the end of 13th month. Determine his monthly payment. a) $452.67 b) $583.33 c) $717.38 O d) $752.68 Oe) $828.90

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which is due at the end of 10 months.
Maintenance costs for a particular production machine increase by $1,000/year over the 5-year life of the equipment. The initial maintenance cost is $3,000. Using an interest rate of 8% compounded annually, determine the present worth equivalent for the maintenance costs.
The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 7% per year. If you borrow $5,500 now and $5,500 each year thereafter for a total of four installments of $5,500 each, how much will you owe at the end of year 4? Interest is computed at the end of each year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. At the end of year 4 you will owe (Round to the nearest dollar.)
Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your uncle to be repaid in three years. If your uncle always earns 10% interest (compounded monthly) on his money invested in various sources and you paid him $20,223. What was the principal amount of the loan?
Solve with both simple interest rate and compoundes as well!!!
yara is saving up for a new tesla. She has no money right now. she is going to put $6150 away in year 1, increasing by $1000 per year starting in the second year, and so on, for 12 years. Interest is 9.5% per year compounded monthly. Calculate: a. the present worth b. the future worth at the end of year 12 c. the future worth at the end of year 12 if there was zero compound interest applied
Mr. John Do borrowed P 1,000 and was able to sign a promissory note that he would pay P 2,032.79 after 4 years. What is the effective rate of interest if money is compounded bi - monthly( once every 2 months )?
Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 3% per year, compounded weekly (52 times/year), after 7 years FV = $ 12,336.00 x Need Help? Read It Watch It
A) How much must be deposited today into an account earning 4% interest annually to support an annual withdrawal of $1,970 a year in perpetuity? B) What if the first withdrawal starts at the end of year 6?
Find the APY in each of the following cases:(a) 10% compounded annually.(b) 9% compounded semiannually.(c) 12% compounded quarterly.(d) 7% compounded daily.
You inherited $12,000 from your Great-Uncle Michael. If you invest it and average an 8% annual rate of return (compounded annually), how much will you have in 20 years?
A person is planning to open a retirement account. He plans is to deposit $1,000 per month for next 45 years. This person visits four local banks and recorded the interest rates: Bank A) 0.08% per month compounded monthly Bank B) 6.2% per year compounded continuously Bank C) 8% per year compounded monthly Bank D) 7% per year compounded semi-annually Determine 1) Which bank should be selected? 2) How much money will be accumulated in 45 years in the selected bank?