Kim is shopping for a car. She will finance $12,000 through a lender. The table to the right shows the monthly payments per thousand dollars borrowed at various APRS and terms. Use the table to answer parts (a) through (c) below. (a) One lender offers Kim an APR of 6% for a 4-yr term. What would be the amount of Kim's monthly payment? APR, r Term, t (in years) 4 5 6 7 8 0.05 $23.03 $18.87 $16.10 $14.13 $12.66 0.055 $23.26 $19.10 $16.34 $14.37 $12.90 0.06 $23.49 $19.33 $16.57 $14.61 $13.14 0.065 $23.71 $19.57 $16.81 $14.85 $13.39 0.07 $23.95 $19.80 $17.05 $15.09 $13.63 0.075 $24.18 $20.04 $17.29 $15.34 $13.88

Kim is shopping for a car. She will finance $12,000 through a lender. The table to the right shows the monthly payments per thousand dollars borrowed at various APRS and terms. Use the table to answer parts (a) through (c) below. (a) One lender offers Kim an APR of 6% for a 4-yr term. What would be the amount of Kim's monthly payment? APR, r Term, t (in years) 4 5 6 7 8 0.05 $23.03 $18.87 $16.10 $14.13 $12.66 0.055 $23.26 $19.10 $16.34 $14.37 $12.90 0.06 $23.49 $19.33 $16.57 $14.61 $13.14 0.065 $23.71 $19.57 $16.81 $14.85 $13.39 0.07 $23.95 $19.80 $17.05 $15.09 $13.63 0.075 $24.18 $20.04 $17.29 $15.34 $13.88

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

See similar textbooks

Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Diane is deciding between two personal loans. For each loan, the loan amount is $7500. Use the ALEKS loan calculator for the following. Also use the regular ALEKS calculator, as necessary. Write your answers to the nearest cent. ALEKS Loan Calculator Loan amount: $ Loan term: Interest rate: Calculate years % Monthly payment: (a) For Loan A, the interest rate is 6.15% per year and the loan term is 7 years. Find the total amount to repay Loan A. S (b) For Loan B, the interest rate is 6.15% per year and the loan term is 5 years. Find the total amount to repay Loan B. (c) For which loan would she pay less, and by how much? Loan A The total amount paid is $ less. Loan B The total amount paid is $less. X Ľ
Monthly loan payments are computed using a formula. Payment information is often arranged in tables to make it easy for customers. Clonthiy Payment per $1,000 of Loan Interest Rate (APR) 2-Year Loan 3-Year Loan 4-Year Loan 5-Year Loan 1% $42.10 $28.21 $21.26 $17.09 2% $42.54 $28.64 $21.70 $17.53 3% $42.98 $29.08 $22.13 $17.97 4% $43.42 $29.52 $22.58 $18.42 5% $43.87 $29.97 $23.03 $18.87 6% $44.32 $30.42 $23.49 $19.33 7% $44.77 $30.88 $23.95 $19.80 EXAMPLE 1 Whu is the monthlu navment for a $4.000 2-vear loan with an APR of 4%?
Jina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 7.45%. Her loan is for $12,700 for 62 days. Assume eachday is365of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.(a) Find the interest that will be owed after 62 days. (b) Assuming Jina doesn't make any payments, find the amount owed after 62 days.
Sam takes out a loan for $3,685.50. The term of the loan is 7 years, and she will make bi-weekly payments. The interest rate on the loan is 3.475% compounded monthly. a) What is the effective interest rate per payment period? b) If Sam is going to repay the loan with level payments, what is the monthly payment amount? c) Fill in the first 3 rows of the loan amortization table. d) What would the nominal interest rate (compounded monthly) have to be if the bi-weekly (level) payment amounts were $24.69?
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.
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.
Determine whether each scenario below is a savings/investments question or a loans question. 1. Sabrina finances a $21,999 car at 4.25% APR over 5 years. If she makes a down payment for $5,000, how much will she end up paying in interest for the car? 2. Alejandro deposits $1,500 into an investment account with an APR of 2.25% compounded monthly. How much does Alejandro need to put into his account each month in order to have $5,000 in 3 years to purchase a car in cash? 3. Amy wants to buy a house for $150,000. She doesn't have enough yet for a 20% down payment. If she puts $2,000 into the account now and $500 every month, how long will it take for her to have enough for a 20% down payment to buy this house? 4. Arnie paid $500 for his $1,200 laptop. If he finances the rest at 6.75% over 24 months, how much money will he end up paying in total for this laptop?
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 $).
Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
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
To start a new business, Alysha intends to borrow $25.000 from a local bank. If the bank asks her to repay the loan in 5 equal annual instalments of $6,935.24, determine the bank's effective annual interest rate on the ipan transaction. With annual compounding, what nominal rate would the bank quote for this loan?