Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number 4.5% (Finance charge per $100 of amount financed) 5.92 of 4.0% 5.5% Payments 30 5.25 6.59 7.26 36 6.29 7.09 7.90 10.54 8.71 48 8.38 9.46 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $- (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)

Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number 4.5% (Finance charge per $100 of amount financed) 5.92 of 4.0% 5.5% Payments 30 5.25 6.59 7.26 36 6.29 7.09 7.90 10.54 8.71 48 8.38 9.46 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $- (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)

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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Ariells borrows 400,000 at i-.03. She repays this loan by paying off only the interést due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 6% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 15 years. Find the AEIR that Arielle has ended up paying on this loan. O A..01744 OB. 0115 O C..02009 O D..01194 O E..01586
Mark deposits $900 at the end of each month in a savings account earning 4.5% quarterly. How soon can he buy his first car assuming that he needs $8 000 for a decent car. Select one: A. 8.52 months B. 9 years OC. 9.06 months D. 8.76 months OE. 8.86 months
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $
Ashley took out a student loan for $12,544. The loan had annual interest of 6.9%. She graduated five years after getting the loan and began repaying the loan upon graduation. Ashley will make monthly payments for two years after graduation. During the five years she was in school not making payments the loan occurred simple interest. What was her subsidize loan monthly payment an unsubsidized loan monthly payment?
A young couple buying their first home borrow $90,000 for thirtty years at 7.6%, compounded monthly, and make payments of $635.47. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. (Round your answer to the nearest cent.)$ (b) How many regular payments of $635.47 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. payments(c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.)$ How much extra must be included with the last full payment to pay off the debt? (Round your answer to the nearest cent.)$ (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.)$ (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your…
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $23,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.6%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank?
Jenna bought a new car for $⁢28,000. She paid a 20% down payment and financed the remaining balance for 36 months with an APR of 3.5%. Assuming she makes monthly payments, determine the total interest Jenna pays over the life of the loan. Round your answer to the nearest cent, if necessary.
(a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to repay the debt in 2 years at 7% per annum, simple interest. How much should Heather repay her grandmother? (b) How much must Jason deposit in a special account paying interest at the rate of 9.5% to receive $75.21 in interest after 6 months? (c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of yearly intesest did the investment pay?
1. On September 1, 1998, Susan Chao bought a motorcycle for $10,000. She paid $1,000 down and financed the balance with a five-year loan at an APR of 9.6%, compounded monthly. She started the monthly payment exactly one month after the purchase, i.e., October, 1998. In the middle of October, 2000, she got a new job and decided to pay off the loan. If the bank charges her 1% prepayment penalty based on the loan balance, how much should she pay the bank on November 1, 2000? Answer.
To finance the purchase of her condo, max took a mortgage loan of $225,000 from Truly Bank for an amortization period of 10 years at a quoted interest rate of 6% per year compounded semiannually. a. What is her monthly payment?b. After 4 years of payments how much she still owes to the Bank?c. How much interest did she pay during the 4th year?
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at 11 1/2% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $

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