olkswagen upgraded a part of its car-assembly-line a time ago and to finance it at the time, borrowed R18 million. It then paid the loan back in seven annual payments of R3,576,420 each, with the first payment one year after it received the loan-amount. You need to determine what the interest rate on the loan was (it stayed constant throughout whole period): The interest rate on the loan was
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Volkswagen upgraded a part of its car-assembly-line a time ago and to finance it at the time, borrowed R18 million. It then paid the loan back in seven annual payments of R3,576,420 each, with the first payment one year after it received the loan-amount. You need to determine what the interest rate on the loan was (it stayed constant throughout whole period):
The interest rate on the loan was? - Select the correct answer:
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- Van Buren Resources Inc. is considering borrowing $100,000 for 182 days from its bank. Van Buren will pay $6,000 of interest at maturity, and it will repay the $100,000 of principal at maturity. a. Calculate the loan’s annual financing cost. b. Calculate the loan’s annual percentage rate. c. What is the reason for the difference in your answers to Parts a and b?Hi Preceptor:) you ignored my question but this is specific question as you can see. First question has been solved. Please you may solve related question. Thank you from Turkey :) This is first question: 1) You decide to buy a small office building costing $150.000 and take out a fixed term loan over 5 years at 10%. The loan is to be paid in 5 equal instalments starting at the end of this year. Estimate the annual repayments and prepare a mortgage repayment table showing interest payments, reduction in capital, opening and closing balances. (Solved) Related other question: 2) Solve the first problem above with a change in interest rates from 10% to 5% after the second year. For the first two years interest rate is 10%. a) Construct a mortage repayment table with a change in interest rate from 10% to 5% for the last three years. b) When the interest rate dropped to 5%, is it possible to pay off the loan earlier than 5 years by keeping payments constant?A car dealership is offering to roll over the amount owed on your car into a new loan so you can purchase a new car. Suppose you owe $5,406.77 on your current car and have agreed to a new car whose total cost, including tax and license, is $29,905.87. You are getting a 5-year loan at an annual interest rate of 4.75%. What are your new monthly payments (in dollars)? (Round your answer to the nearest cent.)
- 1. A car costs Php 1,400,000. Suppose a man gives a down payment of Php 400,000 for the car, and then he loaned the balance from a bank. The bank charges a 5% interest rate, compounded monthly, on the loan, which he will pay monthly for 10 years. a. How much will be his monthly amortization? b. How much will be the total interest on this loan?You want to buy a car worth ₱808,000 at Hyundai Branch through EastWest Bank’s 5-year car loan program. EastWest Bank requires you to pay the 20 percent down payment at Hyundai Branch; the remaining balance shall be your amount loaned from EastWest Bank. If the bank uses an annual interest rate of 0.00132%, compounded monthly, determine the following: a.How much money will the bank finance? b.What is the monthly interest rate of your loan? c.How much money will be bank acquired from you in the 5-year car loan? d.How much is your monthly payment? e.How much money will you be spending on buying the ₱808,000 car?You want to buy a $170000 home. You plan to pay $51000 as a down payment, and take out a 15 year loan at 5.25% interest for the rest. After 6 years, you decide to pay off the entire loan.a) What is the amount of the payment?$ b) What is the outstanding principal after 6 years?$c) If the bank charges 2 points on the loan, what is the amount charged for points?$d) If the bank charges 2 points on the loan, what is the true interest rate?$ TVM SOLVER
- Assume you bought a car using a loan that requires payments of $3,000 to be made at the end of every yearfor the next three years. The loan agreement indicatesthe annual interest rate is 6 percent. Which table in thisappendix would you use to calculate the car’s equivalentcost if you were to pay for it in full today?a. Table C.1 (Future Value of $1)b. Table C.2 (Present Value of $1)c. Table C.3 (Future Value of Annuity of $1)d. Table C.4 (Present Value of Annuity of $1)You have just purchased a new car! You made a down payment of $5,000 and financed the balance. According to the purchase agreement, you must pay $600/month for four years, beginning one month from today. The credit agreement is based on an annual interest rate of 12%. What was the cost of the car? Select one: O a. 6,822 O b. 22,784 с.27 ,784 d. 28,800 e. None of the above OYou were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer that the required down payment was 20% of the net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years. 1.How much was the interest rate charged by the bank for requiring the buyer to pay the monthly amortization of 34,950 for 5 years? 2.How much was your total commission if you received a commision of 5.25% based on the suggested retail price of the car from the car dealer and 1.25% incentive from the bank.
- Nissan-QC, borrowed P2,250,000 on April 16 to purchase a shipment of new cars. The interest rate was 9.3% using the ordinary interest method. The amount of interest was P9,600. a.For how many days was the loan? b. What was the maturity date of the loan?You have just purchased a new automobile costing $24000. the trade-in you have is valued at $6000. the purchase will be financed with a 3% loan which will be repaid over 5 years with monthly payments. determine a.) monthly payment b.) the total interest you will pay the loan over the 5 year period, and c.) the loan balance after the 48th payment. Ignore parts b and cNew Venture Corporation has taken out a $5 million, 30-year, 10% mortgage on its new manufacturing facility. a. How much will New Venture pay each month to discharge this mortgage? b. How much of the first payment is for interest, and by how much does it reduce the balance owed? c. How much of the second payment is for interest, and by how much does it reduce the balance owed? How can I solve b and c from the attached solution (solution to a)? Thank you.