When Maria Acosta bought a car 2 years ago, she borrowed $12,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $288.47, but she'd like to pay off the loan early. How much wil 1 she owe just after her payment at the 2-year mark? (Round your answer to the nearest cent.)

When Maria Acosta bought a car 2 years ago, she borrowed $12,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $288.47, but she'd like to pay off the loan early. How much wil 1 she owe just after her payment at the 2-year mark? (Round your answer to the nearest cent.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Related questions

Q: While buying a new car, David made a down payment of $800 and agreed to month-end payments of $280…

A: The loans are paid by the equal monthly installments that carry the payment for interest and payment…

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…

A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment PV - Loan amount i.e. $10,742 R…

Q: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…

A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…

Q: 1. If money is worth 5% compounded quarterly, how much must Julea save every end of three months to…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: Jon buys a car for $25,000. He pays $5000 down and pays the balance in 60 equal monthly payments. If…

A: Computation:

Q: Ralph has just borrowed 1200 dollars to purchase a new stereo, at a nominal rate of interest of 12.2…

A: Here, Borrowed amount is $1,200 Interest rate is 12.2% Compounding period is Monthly i.e 12 Monthly…

Q: Jean borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments…

A: Interest- The monetary payment for the privilege of borrowing money is known as interest, and it is…

Q: Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.2%,…

A: Here, Deposit for the first three years is $700 per quarter Deposit after three years for the next…

Q: When Maria Acosta bought a car 2 1/2 years ago, she borrowed $10,000 for 48 months at 7.2%…

A: Compound interest refers to the amount to be paid on the borrowed amount for a definite period. It…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Natasha is going to take out an unsubsidized student loan of $13,500 at a 4.2% APR, compounded…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Q: An investor needs to collect $2,000 in 18 months. If she can earn 6% at the bank, compounded…

A: Present Value = Future Value / (1+r)^n Where, r = rate per period i.e. 6%/4 =1.50% n = no. of period…

Q: A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5…

Q: A woman, with her employer's matching program, contributes $400 at the end of each month to her…

A: The question is based on the concept of Annuity.

Q: Five years ago, Diane secured a bank loan of $400,000 to help finance the purchase of a loft in the…

A: Excel Spreadsheet: Excel Workings:

Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…

Q: A recent college graduate buys a new car by borrowing $18,000 at 6%, compounded monthly, for 4…

A: The following calculations are done in the records of a recent college graduate who has applied for…

Q: A woman, with her employer's matching program, contributes $600 at the end of each month to her…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: Lupé made a down payment of $5000 toward the purchase of a new car. To pay the balance of the…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: Liz borrowed $52,500 to purchase a home. The bank offered her an APR of 3.49% for a term length of…

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

Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 6.2%,…

A: Given that p= $ 900 deposited each quarter r = 6.2% compounded quarterly after 9 years p= $ 200…

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…

A: Using excel NPER and PMT function

Q: Robert recently borrowed $20,000 to purchase a new car. The car loan is fully amortized over 4…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest…

A: Present value is the value of the amount in current time that is expected to be received in future…

Q: A man is paying 100,000 at the beginning of each month at a rate of 12% compounded monthly. If the…

A: Present Value of Annuity due refers to the value today of the series of the predetermined amount of…

Q: Anna is buying $16,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Principal = $16,000 rate = 7.2% Interest for 48 months = $16,000*7.2%*4 = $4608

Q: The Jones want to save $95,000.00 in 5 years for a down payment on a house. If they make monthly…

A: A down payment is often paid in cash in the early stages of a purchase of an expensive service or…

Q: A recent college graduate buys a new car by borrowing $22,000 at 6%, compounded monthly, for 4…

A: since you have posted a question with multiple sub-questions, we will solve the first three…

Q: a.) What is the monthly rate? b.) How many total deposits?

A: Information Provided: Amount = $750,000 Term = 4 years Interest rate = 15% compounded monthly

Q: A recent college graduate buys a new car by borrowing $16,000 at 6%, compounded monthly, for 5…

A: Payment of loan made in fixed installment which includes interest as well as portion of principal,…

Q: A person needs $17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Borrowing Amount = 17,700 Semi Annual Installments Time Period = 20 semi annual periods Interest…

Q: A woman, with her employer's matching program, contributes $500 at the end of each month to her…

A: The future value function can be used to derive the future value of a present sum or stream of cash…

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 5…

A: Installment is the amount of periodic payments made by the borrower to the lender in order to pay…

Q: A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…

A: formula for remaining balance: remaining balance=princial×1+rmn-pmt×1+rmn-1rm where, r = rate of…

Q: A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A woman, with her employer's matching program, contributes $300 at the end of each month to her…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…

A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…

Q: A recent college graduate buys a new car by borrowing $18,000 at 8.4%, compounded monthly, for 5…

A: Borrowing = 18,000 Compounding Monthly, hence we will divide interest by 12 and multiply time period…

Q: Assuming that a $45,000 shop loan is financed at 12% over 4 years, what is the monthly shop payment?…

A: 2. Loan amount = $45000 Interest -12% Period = 4 years Amount (A) = P* [i *…

Q: Carmen Hernandez has saved $8,000 for a deposit on a car. The highest monthly payment she can afford…

A: Deposit amount = $ 8,000 Monthly payment = $ 455 Annual interest rate = 11% Monthly interest rate =…

Q: Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to…

A: Compound interest is also interest on interest that is the interest which is accumulated on the…

Question

1
When Maria Acosta bought a car 2
years ago, she borrowed $12,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $288.47, but she'd like to pay off the loan early. How much will
she owe just after her payment at the 2
-year mark? (Round your answer to the nearest cent.)
2

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

Outstanding loan:

VIEW

Excel:

VIEW

Answer:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 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

When Maria Acosta bought a car 2 owe just after her payment at the 2 $ years ago, she borrowed $13,000 for 48 months at 6.6 % compounded monthly. Her monthly payments are $308.89, but she'd like to pay off the loan early. How much will she -year mark? (Round your answer to the nearest cent.)
1 When Maria Acosta bought a car 2 years ago, she borrowed $17,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $408.67, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 =-year 2 1 mark? (Round your answer to the nearest cent.) $
Pat Lavoie bought a home for $180,000 with a down payment of $10,000. Her rate of interest is 6% for 30 years. (Use Table 15.1.) ****TABLE ATTACHED****** a. Calculate her monthly payment Monthly Payment= b. Calculate her first payment, broken down into interest and principal. First payment interest= First payment Principal= c. Calculate her balance of mortgage at the end of the month. Balance of mortgage=
When Maria Acosta bought a car 2 1/2 years ago, she borrowed $10,000 for 48 months at 7.2% compounded monthly. Her monthly payments are $240.39, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 1/2-year mark? (Round your answer to the nearest cent.)
o help purchase her new car, Nicole is taking out a $34,000 amortized loan for 6 years at 5.8% annual interest. Her monthly payment for this loan is $560.27. ill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 12 Payment number Principal payment New loan balance Interest payment 1 2 $104.91 $455.36 $21,250.60 31 30
Pat Lavoie bought a home for $180,000 with a down payment of $10,000. Her rate of interest is 6% for 30 years. (Round your answer to the nearest cent.) a. Calculate her monthly payment. b. By how much will her loan principal decrease after she makes her first monthly payment? c. Calculate her balance of mortgage at the end of the month.
Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments of $100.00 per month for a certain amount of time. If the interest rate on the loan is 0.66 percent per month, she makes her first $100.00 payment later today, and she makes her final monthly payment of $100.00 in 12 months, then what is X, the amount of the loan? A O An amount less than $1,153.00 or an anmount greater than $1,324.00 O An amount equal to or greater than $1,153.00 but less than $1,199.00 O An amount equal to or greater than $1,199.00 but less than $1,245.00 O An amount equal to or greater than $1,245.00 but less than $1,275.00 O An amount equal to or greater than $1,275.00 but less than $1,324.00
Emily is buying a new car for $1,700. The dealer is charging her an annual interest rate of 10.2%. If she pays off the loan in 24 months, what are her monthly payments? If she makes a down payment of $210, how much will her monthly payments be? Round to two decimal places. OA. $170.57; $74.75 B. $170.57; $10.54 C. $85.28; $74.75 O D. $145.28; $10.54
Trevor took a loan of $7,700 from her parents to purchase equipment for her hair salon. If they agreed on an interest rate of 7% compounded monthly on the loan, what quarterly payments will settle the loan in 5 years if she made her first payment 3 years and 4 months from now? O $570.55 O $507.23 O $460.08 O $409.02
1. Mary Smith took a car loan of $20,000 to make 60 equal monthly payments. The interest compounds monthly. (a) Calculate the monthly payment for Mary, if the nominal interest is 9% per year.(b) (How much interest would Mary pay for taking the loan? (c) Immediately after making the 20th payment, if she wants to pay off the car loan, how much does she need to pay?
15 years ago, Laura borrowed $424,000 to buy a house. She has a 30 year, 5.4% fixed rate mortgage. She made the 180th payment today. Payments are made monthly. Given that she can refinance at 2.4% p.a. with 15 year maturity, what is the new monthly payment? 1741.85 1941.85 1641.85 1541.85 1841.85
o help purchase her new car, Nicole is taking out a S34,000 amortized loan for 6 years at 5.8% annual interest. Her monthly payment for this loan is $560.27. Il in all the blanks in the amortization schedule for the loan. Assume that each month is of a vear. Round your answers to the nearest cent. Payment number Interest Principal payment New loan payment balance 1 2$ 2 30 $104.91 $455.36 $21,250.60 31