Sultan’s Used Cars just sold you a clunker (you need it to get to class on time). You financed the $8,000 purchase price for 48 months. They said your payment would be $250. What interest rate did they charge you (assume monthly compounding)?

Q: You are financing a car worth $29509.88 with tax included. Interest rates are 7.6% compounded daily.…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily.…

A: Loan amount (L) = $29039.30 - $1700 = $27339.30 Interest rate = 10.8% daily compounding (m = 365) n…

Q: Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 14.9…

A: Compound = monthly  = 12 Present value = pv = $6200 Interest rate = r = 14.9 / 12% Payment = p =…

Q: You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year loan has…

A: Assumption: It is assumed the given situation is in monthly compounding. The question gives the…

Q: I need assistance to solve this problem: On September 1, 2018, you bought a car for $23,000. You…

A: Calculation of payoff the loan on November 1, 2020:First it is required to calculate the total…

Q: 5. When Jose just moved into the town and wanted to set up an internet connection using AT&T, he was…

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Q: A commercial bank will loan you $27,000 for five years to buy a car. The loan must be repaid in 60…

A: EMI or equated monthly installment is referred to as an amount payable, which is paid in each and…

Q: A used car can be purchased for $15,200 with monthly payments spread over 4 years, the person has…

A: We need to find the total installment cost of the loan.

Q: You are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest…

A: Given information:Selling price of refrigerator=$500Interest rate=0.5%No. of installments=30a)…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: You just bought a used car for $11,000 with no down payment using dealer financing at 4% APR…

A: Price of the Car is $11,000 APR is 4% compounded monthly Monthly payment is $300   To Find:- Time…

Q: The RentWay company advertises itself as “Rent to own program”. For example, you can rent a $180 TV,…

A: The concept of time value of money means that the value of money today is worth more than its value…

Q: You wish to buy a car that has a monthly payment of $250 and with a down payment of $1000. You find…

A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

Q: You want to buy a new sports coupe for $64,987, and the finance office at the dealership has quoted…

A: Amortization is the systematic repayment of loan and interest for a decided period of time. Each…

Q: Murphy made a down payment of $2,000 on a car costing $8,000. Murphy will pay the remaining balance…

A: A down payment is an initial payment made by a borrower towards the purchase of a property or asset…

Q: You are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55…

A: The time value of money is a concept in finance that recognizes the idea that a sum of money has…

Q: You buy a car with a down payment of $1000 and $200 per month for 3 years. a) If the interest rate…

A: Loan amount is the present value of monthly payment based on time value of money and intrest rate of…

Q: To borrow money, you pawn your guitar. Based on the value of the guitar, the pawnbroker loans you…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Compound = n = Monthly = 12Present Value = pv = $25,000Time = t = 5 * 12 = 60Interest Rate = r = 9 /…

Q: S Cars Just sold you a clunker (you need it to get to class on time). You financed the $4,728.48…

A: Loan amount = $4,728.48Monthly payment = $250Number of months = 24  months

Q: Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a…

A: Following formula will be used to calculate the present value:

Q: .43% nominal yearly, compounded weekly, how much does this generator cost fam to purchase when…

A: Discount rate:It is the rate used to evaluate the amount of money that will be invested in the…

Q: You buy a home for $177,831 and put $11,459 down. You borrow the remainder. The mortgage company…

A: Loan is one of the alternative of financing. An individual or organization who is taking the loan…

Q: A payday lender might lend you $350 now, and you'll be asked to pay them back when your paycheck…

A: A payday loan is a high-risk loan given for a short period of time on the promise that it will be…

Q: A buyer wants to purchase a home for $150,000 with a 30% down payment. The lender charges 1.75…

A:

Q: A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: You have a balance of $9700 for your tuition on your American Express credit card. Assume that you…

A: Here,Balance of the card is $9700APR is 13%Minimum Payment is 4%

Q: Today, you purchased $5300 on a credit card that charges an APR rate of 22.9 percent, compounded…

A: Monthly payment refers to an amount to be paid every month for the repayment of a loan amount by the…

Q: You just bought a new TV for $2,559.72 on your credit card; assume no other purchases The APR is 18%…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: You are financing a car worth $26194.15 with tax included. Interest rates are 11.9% compounded…

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Q: Paco buys a bicycle that costs $4,700. Give a 30% down payment and pay with a payment of $3,627.23…

A: Interest is the periodic obligation of the borrower to pay towards the sum owed. The interest rate…

Q: You wish to buy a $20,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are…

A: The borrower can pay interest at regular intervals or at the time of making payment. The payment…

Q: A car dealership is offering to roll over the amount owed on your car into a new loan so you can…

A: LOAN AMOUNT LEFT 5406.77 ADDITION LOAN AMOUNT 29905.87 NEW TOTAL LAON AMOUNT 35312.64 INTEREST…

Q: Manjean is making car payments of $662 per month for the next 3 years. Manjean knows that the car…

A: Formula Car price = P*[1-(1+I)-N]/I Where P - Monthly payment i.e. $662 I - Monthly interest rate…

Q: You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the…

A: Time value concept Receiving the value today is of more value than that of receiving the same amount…

Q: You wish to buy a $10,900 dining room set. The furniture store offers you a 2-year loan with an APR…

A: Variables in the question:Loan amount (Cost of dining room set)=$10900N=2 yearnper=2 year…

Q: ou are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: In this question , we will be calculating monthly payment on car loan at 7% APR with monthly…

Q: What is the total payback amount of the loan? What is the amount of each payment? /month What is the…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.