Val bought a car for $48,000, putting down $15,000 cash and financing the remainder. How much are his annual car payments if he financed the car for 5 years and paid an annual interest rate of 6 percent? answer is 7,834.08 How much would be his annual payments if he made payments at the beginning of each year? answer is 7,390.64

Val bought a car for $48,000, putting down $15,000 cash and financing the remainder. How much are his annual car payments if he financed the car for 5 years and paid an annual interest rate of 6 percent? answer is 7,834.08 How much would be his annual payments if he made payments at the beginning of each year? answer is 7,390.64

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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Similar questions

(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?
Julian won the lottery. He deposits some of his winnings into an account earning 2.75% interest compounded quarterly . He makes his deposit of $25000 and also decides to start making deposits of $1000 into the same account at the end of each quarter . How much will he have after five years?
Joe secured a loan of $10, 000 five years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 13 years at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $
Kent sold his car to Carolynn for $2000 down and monthly payments of $295.88 for 3 years, including interest at 7.5%compounded monthly. What was the selling price of the car? Round to the nearest dollar.
Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him interest at a rate of 10% per year compounded semi annually and deposits 16 semi annual payments. After 8 years Mr. Sarwar gives loan to Mr. Athar that accumulated amount(which he receives from the bank after 8 year) at an interest rate of 10% compounded annually. What amount Mr. Sarwar will have finally when Mr. Athar returns the amount to him after 3 years? How much total interest should he earn in 11 years time?
Carl borrowed P101,466 from his friend to pay for remodeling work on his house. He repaid the loan 20 months and 12 days later with simple interest at 1.36%. His friend then invested the proceeds in a bank for 10 years paying 5.83% compounded monthly. How much will his friend have at the end of the 10 years?
Russell bought a new hot tub today from Situation Hot Tubs. What is the present value of the cash flows associated with this transaction if the discount rate is 5.70 percent, he will receive a rebate of $527.00 from Situation Hot Tubs in 1 year, and he will pay $3,973.00 to Situation Hot Tubs in 4 years? Note: the correct answer is less than zero. $-2684.29(plus or minus 10$) $-3681.45(plus or minus 10$) $-2760.68(plus or minus 10$) $-2655.87(plus or minus 10$) None of the above has plus or minus $10 to correct answer
Gerritt wants to buy a car that costs $27,000. The interest rate on his loan is 5.35 percent compounded monthly and the loan is for 5 years. What are his monthly payments? Multiple Choice (select the correct answer) $511.58 $539.56 $496.74 $513.86 $524.73
Sean has taken out student loans to pay for college. He has borrowed $36,000 to cover tuition fees and agreed to pay the balance at a 4.68 % add-on rate for 8 years. What are his monthly payments and how much would he end up paying for his education if he kept the loan to term? Total amount to be repaid: Monthly payments:
Mr.steinbeck obtained a car loan for 800.000 with an annual rate of 15%for five years. how much will he pay after 5 years
Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did he have to return?
John borrowed $50,000 to purchase a new luxury car. The loan was for 4 years at a nominal rate 4) of 3% per year compounded monthly. John has been making equal monthly payments on the loan. He just made his 18th payment. a) What is John's monthly payment? How much of the loan has been repaid immediately after the 18th payment? How much of the first payment was interest? How much of John's next (19th) payment is interest? b) c) If John decides to pay off the loan at the time of his next (19th) payment, how much would he d) have to pay?

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