uston purchased a wall unit for $2,200. He made a $600 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer

uston purchased a wall unit for $2,200. He made a $600 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

See similar textbooks

Related questions

Q: Miguel purchased a hot tub costing $5,070 by taking out an installment loan. He made a down payment…

A: Given: Hot tub cost = $5,070 Down payment = $1,300 Finance = 24 months Payments each month = $179.77

Q: The owner of a hotel borrowed $36,000 at 7.8% p.a. compounded semi-annually and agreed to repay the…

A: given data borrowed amount = $36,000 Apr = 7.8% Pmt = $1050

Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…

A: The question can be solved as follows:

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: USING EXCEL RATE FUNCTION AND APR FORMULA

Q: evin bought a washer and dryer for $1050 but only had a down payment of $150.00. He financed the…

A: In add on method we simply add interest for given period and add to that with principal amount.

Q: Andrew Bolkonsky borrows $200,000 to purchase a house for investment purposes on January 1st 2006.…

A: The concept of present value states that a sum of money is worth today more than the same sum of…

Q: Luis Mahla purchases a Porsche Boxster for $44,300 and finances the entire amount at an annual…

A: Purchase Price = $44,300Sales Tax = 6% of Purchase PriceLicense Fee = 1% of Purchase Price…

Q: Mang Moises needed a refrigerator for his canteen. The refrigerator, which costs P:26,000, may be…

A: In financing, amortization is the amount of loan, in which principal loan paid according to the…

Q: Doug Black bought a jet ski with a 8% add-on interest installment loan from his credit union. The…

A: PURCHASE PRICE = $1950 DOWNPAYMENT = 15% AMOUNT FINANCED = 1950 x (1-0.15) AMOUNT FINANCED = $…

Q: Mr. White takes a 15-year loan of $50000 to purchase an equipment for his factory. If the interest…

A: For calculation of monthly payment(PMT), we need to use the following formula PMT =PV*i/[1-1/(1+i)n]…

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: The Annual percentage rate(APR) is the percentage rate that shows the interest rate calculates on…

Q: Lee purchased a laptop and promised to pay P2500 every month for 2 years, beginning on the date of…

A: Purchase of Assets on Loan Monthly payment Need to calculate prepayment price to close the liability

Q: Holly received a 15 year loan of $340,000 to purchase a truck. The interest rate on the loan was…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 48 months…

A: MONTHLY PAYMENT FORMULA: PMT=P×rm1-1+rm-nwhere,p = loan amountr = APRm = frequency of compoundingn =…

Q: ) the interest refund

A: When we buy goods on an installment basis we have to pay the purchase price in installments at…

Q: Malik took out a loan for $27,800 from CIBC at 5.51% compounded quarterly, and will be making…

A: We need to use financial calculator to solve this problem where P/Y =Payments par year C/Y…

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: Annual percentage rate (APR) is the annual cost of funds borrowed. Annual percentage rate is…

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Amount of loan = Purchase cost - Down payment = $5,030 - $1300 = $3730

Q: A man buys a house for $350,000. He makes a $150,000 down payment and amortizes The rest of the…

A: Price of house = $350,000 Down payment = $150,000 Mortgage amount = $350,000 -$150,000 Mortgage…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,500. Her…

A: Introduction: Installment: Its a method of payment paying monthly , semi annually , annually etc.

Q: Nelson took out a 25-year home loan of $500,000. He made equal month-end repayments at the interest…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: The formula for the calculation of APR is as follows: APR=Fees+InterestPrincipalTime period×12

Q: Richard purchased a car which had a selling price of 7200. He paid 30% down and agreed to pay 240 RO…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: Given: Particulars Amount Cost of hot tub $5,030 Down payment $1,300 Payments $173.77…

Q: Huan accepted an in-store loan on a computer she just purchased. The monthly payment is $64.53 on…

A: Loan is an agreement between lender and borrower where lender provide borrower with funds in…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: In the purchase of a rice cooker, a buyer pays P 200 cash, and he will discharge the balance,…

A: Cash price of the rice cooker will be equal to the sum of down payment of P200 and present value of…

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: A loan is a debt amount borrowed by a person at an interest rate. A borrower of a loan is required…

Q: An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment.…

A: Cost of house = $100,000 Down payment = $20,000 Interest rate = 9% Time period = 20 years Payment…

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: The APR is used for representing the interest rate paid on the outstanding loan balance. It takes…

Q: How much are the monthly payments?

A: An interest is charged by bank or financial institutions over the borrowed amount. The sum payable…

Q: Jill Walsh purchases a bedroom set for a cash price of $3,920. The down payment is $392, and the…

A: The goods financing system refers to a system in which the buyer can use the goods without paying…

Q: Dave Krug finances a new automobile by paying $6,500 cash and agreeing to make 40 monthly payments…

A: Present value: It refers to today’s value of the money that will be received by an investor at some…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Given, Wall unit Cost =$2300 Down payment =$600 Loan Installment = 48 months Payments = $43.5 per…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Financing an item provides a facility to the purchaser to make the payment of the item in small…

Q: Todd Gunderson buys a new computer system for $2,000, plus 8% sales tax. He financed the entire…

A: The purchase value of the system is $2,000, plus 8% sales tax. The installment cost is $60.…

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Monthly payments interest rate is calculated by excel function RATE, where the inputs are: pv:…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: A man buys a three-year-old Chevrolet from Skunk Motors for $14,600/ He puts $300 down and finances…

A: Monthly payment (pmt) formula: PMT=P×r121-1+r12-n where, p=principal n=number of payments

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Michelle Passmore is purchasing a $25,000 automobile, which is to be paid for in 60 monthly…

A: A loan is an agreement between two parties where a sum is forwarded in exchange for periodic…

Q: Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the…

A: Cost of piano is $132,000 Down payment is 25% Equal Monthly Payment is $1,650 Interest rate…

Q: Jamal bought a car and is making month-end payments of $510.35 for the next 4 years to pay it off.…

A: given, month end payment, Mode = END N= 4 X12 = 48 years IY = 2.99% CY= 2 (since interest is…

Question

Tim Houston purchased a wall unit for $2,200. He made a $600 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Tim Huston purchased a wall unit for $2,200. He made a $600.00 down payment and financed the balance with an installment loan for 48 months. If Tim’s payments are $42.59 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places)
Give only typing answer with explanation and conclusion Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $43.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
Tim Houston purchased a wall unit for $2300. He made a $600 down payment and financed the balance with an installment loan for 48 months. If Tims payments are $42.50 per month calculate the APR on the loan. round to two decimal places
Shelly Obama Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258.75 per month. Under the APR formula, what is the amount of interest included in her first payment? Keep your answer to two decimal places
Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment of $1,300 and financed the balance for 24 months. If the payments are $179.77 each month, use the APR formula to find the APR. Round to the nearest hundredth of a percent. x %
Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
Jina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 7.45%. Her loan is for $12,700 for 62 days. Assume eachday is365of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.(a) Find the interest that will be owed after 62 days. (b) Assuming Jina doesn't make any payments, find the amount owed after 62 days.
Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?
A man borrows $60,000 to help pay for his college expenses. He intends to pay off the loan with regular monthly payments over the next 15 years. Find the monthly payment if he is being charged 5.6% interest per year, compounded monthly. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The monthly payment is Blank 1. Calculate the answer by read surrounding text. dollars.
Charmaine obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $17,100 for 76 days. Assume each day is of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) 1 365 s Assuming Charmaine doesn't make any payments, find the amount owed after 76 days. $ 3
Find the monthly payment for the loan indicated. (Round your final answer to two decimal places. See Example 5.) To purchase a home, a family borrowed $99,000 at an annual interest rate of 6.3% for 20 years.
Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment of $1,300 and financed the balance for 24 months. If the payments are $179.77 each month, use the APR formula to find the APR. Round to the nearest hundredth of a percent. %____