My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5% APR over five years. She has $3000 saved up and is ready to put down on the loan. 1. What is the actual annual percentage rate she will be charged if she pays all of the $3000 as a down payment for the five years? What will her monthly payments be? 2. Would it be better (cheaper) for her to pay $1000 down now, borrowing the rest, but in 1 year pay the other $2000 put towards principal? How will this affect the loan?

My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5% APR over five years. She has $3000 saved up and is ready to put down on the loan. 1. What is the actual annual percentage rate she will be charged if she pays all of the $3000 as a down payment for the five years? What will her monthly payments be? 2. Would it be better (cheaper) for her to pay $1000 down now, borrowing the rest, but in 1 year pay the other $2000 put towards principal? How will this affect the loan?

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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Vickie decides to sell her current home and move to a larger home. She estimates that she can sell her current home for $2,000,000 and can buy a larger home for 6,000,000. She plans to use the entire $2,000,000 sale proceeds as a down payment on the new home and will finance the remainder for 10 years at 6% nominal annual interest compounded monthly. What is her estimated monthly mortgage payment? Christine wants to be able to purchase a dream car for about $50,000 on January 1, 2028, just after she graduates from graduate school. She has a full-time job and started making deposits of $730 each month into an account that pays 6% compounded monthly beginning with the first deposit on February 1, 2023. The last deposit is to be made on January 1, 2028. Determine how much money she would have saved to buy the car. Will she be able to buy her dream car?
Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out a 30 year loan at 4.9% interest for the balance. a) How much is the loan going to be? b) What will the monthly payment be for Evan and Emmanuel? c) How much of the first payment is interest? d) What is the total of the payments? e) How much interest was paid?
Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in Selkirk, MB where the PST + GST is 12%. She wants to pay the truck off in 5 years. She has a down payment of $1400. The dealership will finance the truck at an interest rate of 4.95%. a. How expensive a truck can Ellen afford to buy? b. How much interest will Ellen pay over the course of the loan?
Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan (plus simple interest) is repayable in 6 years. What is the total amount that must be repaid? Round your answer to the nearest dollar and do not round until the final answer. Provide your answer below:
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Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance is available and the terms are that the loan lasts for 6 years, and the annual interest rate is 8%. What is the maximum price for a car that Ryan's budget can afford?Round your answer to the nearest hundred dollars.
Tammie wants to buy a scooter that costs $3,500. Her mom will loan her the money at 5% annual interest as long as she makes monthly payments over the next 3 years. How much will Tammie's monthly payment be?
You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you insist on paying them interest. The agreement is that they will lend you $8000.00 at a simple interest rate of 2% per year. Once the interest amounts to $480, you agree to pay them back the $8000 plus the $480 interest. After how many months will you have to pay them back? Please answer step by step
Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of the car from her bank at 6 percent interest rate. The loan requires monthly payments for a period of five years. If the first payment is due in one month after purchasing the car, what will be the amount of Wilma’s monthly payment on the loan?
Dan is planning to buy a new home that costs $130000 Find the following if Dan make a 5% downpayment. How much will Dan's down payment be? (Round to the nearest cent) How much will Dan owe after he makes the down payment? (Round to the nearest cent)
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?

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