One retailer charges $1048 for a laptop computer. A firm of tax accountants buys 8 of these laptops. They make a down payment of $1200 and agree to amortize the balance with monthly payments at 6% compounded monthly for 4 years. Prepare an amortization schedule showing the first four payments for this loan.
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- Chuck’s Publishing, Inc. borrows $30,000 from Citicorp to finance the purchase of a new office cooling system. The loan has an interest rate of 12% and Chuck’s will be required to make annual payments for the next 3 years. Fill in the following loan amortization schedule for this transaction.A logo design company purchases four new computers for $16,500. The company finances the cost of the computers for 3 years at an annual interest rate of 4.175% compounded monthly. Find the monthly payment (in dollars) for this loan. Round your answer to the nearest cent.The Fly-by-Night finance company advertises a “bargain 6%plan” for financing the purchase of automobiles. To the amount of the loan being financed, 6% is added for each year money is owed. This total is then divided by the number of months over which the payments are to be made, and the result is the amount of the monthly payments. For example, a woman purchases a $10,000 automobile under this plan and makes an initial cash payment of $2,500. She wishes to pay the $7,500 balance in 24 monthly payments: What effective annual rate of interest does she actually pay?
- A BUILDING CONTRACTOR GIVES A $14,000 PROMISSORY NOTE TO A PLUMBER WHO HAS LOANED HIM $14000. tNHE NITE IS DUE IN 9 MONTHS WITH INTEREST AT 9%. SIX MONTHS AFTER THE NOTE IS SIGNED, THE PLUMBER SELLS IT TO A BANK. IF THE BANK GETS A 10% RETUEN ON ITS INVESTMENT, HOW MUCH WILL THE PLUMBER RECIEVE??You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $20 which is taken out of the initial proceeds of the loan. Taking into account the impact of the initiation fee, what is the effective annual interest rate on the loan?ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\
- A local finance company will loan $15,000 to a homeowner. It is to be repaid in 36 monthly payments of $588 each. The first payment is due 30 days after the $15,000 is received. What interest rate per month are they charging?Joyce Mesnic bought an HP laptop computer at Staples for $699. Joyce made a $100 down payment and financed the balance at 10% for 12 months. What is her monthly payment? (Use the loan amortization table.) (Round your answer to the nearest cent.) Monthly PaymentRuby Bakeshop obtains a loan of P500,000, with interest at 8% compounded quarterly, for the construction of a new branch in Angeles City. The owner will repay the loan by payments made quarterly for 2 1/2 years. Create an amortization schedule to answer the following questions: 1. How much principal repayment paid in the 9th payment period? 2. How much is the present outstanding balance on the 7th payment period? 3. How much is the total interest? 4. How much is the interest paid in the 5th payment? 5. Find the quarterly payment.
- Smith borrows 21,500 to purchase a new car. The car dealer finances the purchase with a loan that will require level monthly payments at the end of each month for 4 years, starting at the end of the month in which the car is purchased (assume the car is purchased on the 1st of the month). The loan has 0% interst rate for the first year followed by 7% annual nominal interest rate, compounded monthly, for the following three years. Find the outstanding balance on the loan at the end of the first year.The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months. The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90.64 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?Wade Ellis buys a new car for $16,857.58. He puts 10% down and obtains a simple interest amortized loan for the rest at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ 395.82(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 $ $ $ $