Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $38,000. The dealer has told Tim that if he can come up with a down payment of $5,300, the dealer will finance the balance of the price at a 6% annual rate over 4 years (48 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing finance the balance of the car price at an annual rate of 3.4%? Tim's monthly (end-of-month) payment amount is $. (Round to the nearest cent.) b. Tim's monthly payment, if the dealer were willing to finance the balance of the car price at an annual rate of 3.4%, would be $ . (Round to the nearest cent.)

Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $38,000. The dealer has told Tim that if he can come up with a down payment of $5,300, the dealer will finance the balance of the price at a 6% annual rate over 4 years (48 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing finance the balance of the car price at an annual rate of 3.4%? Tim's monthly (end-of-month) payment amount is $. (Round to the nearest cent.) b. Tim's monthly payment, if the dealer were willing to finance the balance of the car price at an annual rate of 3.4%, would be $ . (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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it For pre nments Unit Activity: Credit Cards and Large Purchases Buying a House Bethany and Samuel are buying a new house. They have $25,000 saved for a down payment and know that they can afford a monthly payment of $1,500 or less. They also know that the best interest rate they can get is 5.1% annually and they want to sign a 30-year mortgage. Part A If 5.1% is the annual interest rate, what is the monthly interest rate? BI U X² X₂ V 田 15px- Space used (includes formatting): 0/ 15000 V V Part B If they sign a 30-year mortgage, how many monthly payments will they make? BIUX² X₂ 15px M くく EEEEE 6 of 7 E Dec 1 1:56 Save & Exit
Mario is buying a new car for $18,500. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 5% down payment, 4.5% APR for 5 years 10% down payment, 3.5% APR for 4 years
Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $31,000. The dealer has told Tim that if he can come up with a down payment of $6,200, the dealer will finance the balance of the price at a 6% annual rate over 5 years (60 months). a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.8%? a. Tim's monthly (end-of-month) payment amount is $ (Round to the nearest cent.)
Michael wants to buy some new exercise equipment for his home gym for $312,000 financed at an annual interest rate of 13% using the add-on method. If Michael wants to pay off the loan in 4 years, what will be his monthly payment? Question content area bottom Part 1 His monthly payments are $enter your response here. (Round to the nearest cent as needed.)
Loan A B с Principal $7,000 $7,000 $7,000 Annual payment $2,914.24 $2,256.61 $1,846.48 Term (years) 3 345 4
Not sure where to start this one Suppose that you purchase a new home that costs $180,000. A local bank offers you a 3% fixed rate mortgage loan for 30 years. Also, you are required to make a 20% down payment immediately. a) Find your monthly payment. b) Find the interest amount and the principal amount in your first monthly payment. c) Find the total interest paid for 30 years.
Number 3: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13% HST for a total price of $28,250. The dealership has a deal for $0 down payment and charges 2.79% interest on the loan. Rajesh plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. Question a. How much will his weekly care loan payment be? b. How much will he have paid to the dealership by the time his loan is paid off? c. How much interest will be paid? Number 4: Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 19% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely. Question a. What would Hak Young’s minimum payment have to be in order to pay off his debt in 5 years? b. What will be the total interest paid? Number 5: Hak Young is daunted by that monthly payment amount and is…
Calculating Loan Payments You want to buy a new sports coupe for $69,300, and the finance office at the dealership has quoted you a loan with an APR of 5.6 percent for 48 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?
3. Chrissy is looking to buy a new bedroom set for $9674.99 She would also have to pay a $300 delivery fee. She is considering the following two credit options: Financing through the store at 3.7%, compounded monthly for a term of 2 years, with the incentive that the dealership will remove the shipping charge AND give a $500 rebate. • A bank loan at 3.5%, compounded monthly, for a term of 3 years. a. What are the monthly payments for each option? b. What is the total payment for each option? c. Which option should she choose and why? d. Why might she choose the other option?
QUESTION 1 Liam can afford $175 per month as a car payment. If Liam can get an auto loan at 4% interest for 5 years, how expensive of a car can Liam afford? Give your answer to the nearest dollar.
Vijay
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