When Maria Acosta bought a car 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 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 $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 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: Jason buys a large vacant lot in a predominantly residential neighborhood. He wants to build a…

A: The objective of the question is to identify the most likely reason why Jason would not be able to…

Q: P8-24 Two-Stage Dividend Growth Model [LO1] A7X Corporation just paid a dividend of $1.35 per share.…

A: The Dividend Growth model is a method used to value a stock by forecasting its future dividends and…

Q: Required information [The following information applies to the questions displayed below.] A pension…

A: The optimal risky portfolio is the best combination of risky assets, like stocks, that achieves…

Q: What is the difference on the total interest payments between a 25 year 5.65% fixed rate fully…

A: The objective of the question is to find the difference in total interest payments between a 25-year…

Q: cYou observe that the exchange rates for Japanese Yen at Tokyo Bank are given as follows: bid…

A: Bid in Japan = ¥101/$Ask in Japan = ¥102/$Bid in New York =$0.0097/¥Ask in New York =…

Q: You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your…

A: Mortgage refers to an arrangement between borrower and lender of money in exchange of property as…

Q: Problem 8-6 Profitability Index (LO3) The following are the cash flows of two projects: Year Project…

A: The Profitability Index (PI) is a capital budgeting technique used to assess the attractiveness of…

Q: A student loan is offered under the following conditions: credit of 30, 000 euros at 3% over a…

A: The objective of the question is to calculate the constant annuities of a student loan and to draw…

Q: Company A is an AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNS at…

A: Six-month LIBOR margin:For company A = 0.165%For company B = 1%Three-month LIBOR margin:For company…

Q: Ted, Will, Mike, and Tom own a 20-room home as tenants in common. Mike and Tom, two of the owners,…

A: The question is asking whether Mike and Tom, who are part of a tenancy in common, can legally sell…

Q: Q7. Compute the Future Value of the following Cash Flows: a) Take rate as r=9% b) Take rate as r-10%…

A: The objective of the question is to calculate the future value of the given cash flows at two…

Q: Nancy works as a wealth manager. A new client has provided Nancy with the following information…

A: Value of Walmart stock (VW) = $47,000Value of Disney stock (VD) = $39,000Value of Tesla stock (VT) =…

Q: Suppose a seven-year, $1,000 bond with a 7.7% coupon rate and semiannual coupons is trading with a…

A: The bond will be selling at par , if the Yield to maturity = Coupon rateThe bond will be trading at…

Q: Both Bond A and Bond B have 9.8 percent coupons and are priced at par value. Bond A has 9 years to…

A: Bonds' interest rate is the one of the major factor that affect the price of the bond at which it is…

Q: On October 5, 2022, you purchase a $10,000 Treasury-note that matures on August 15, 2031 (settlement…

A: Clean price is referred as the price of the bonds that is without any interest. Whereas, the dirty…

Q: A bond with 21 years until maturity has a coupon rate of 7.6 percent and a yield to maturity of 6.2…

A: Bonds prices today can be determined by using the present value function using the annual payments…

Q: a. Many years ago, Castles in the Sand Incorporated issued bonds at face value at a yield to…

A: The bond price is the cost of a bond. It is the cost of purchasing that assurance from another…

Q: andyRandy opened an RRSP deposit account on December 1, 2008, with a deposit of $18001800. He…

A: Future value is computed as follows:-whereFV= future valueA= amount investedr= interest raten= time…

Q: The risk-free rate is 5.25%. The expected return on the market is 12% with a standard deviation of…

A: Risk free rate = 5.25%Expected return on market = 12%Standard deviation of market = 18%Expected…

Q: arnie and beth litner recently bought a house for $425,000. They put 10% down as a down payment and…

A: The answer to the given question has been provided below in a detailed manner along with all the…

Q: Required information [The following information applies to the questions displayed below.] A pension…

A: Expected return of Stock funds (S)16%Expected return of Bond funds (B)10%Risk-free rate5.50%Standard…

Q: Tristan has a mortgage of $330,000 through his bank for property purchased. The loan is repaid by…

A: The interest is paid on the borrowed funds at fixed rates. the amount of interest paid in year 1 is…

Q: The YTM on a bond is the interest rate you earn on your investment if interest rates don't change.…

A: The bond price is the price at which bond is currently trading in the financial market. The par…

Q: Ayden's Toys, Incorporated, just purchased a $525,000 machine to produce toy cars. The machine will…

A: Financial break-even point refers to that point at which total revenue becomes equal to that of…

Q: A home owner defaults and he has three mortgages on the house. At the time of the default, the first…

A: In order to determine the price of the house where the third lien holder would recover 50% of their…

Q: Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry for 720 million yen…

A: A company has the option to use forward contracts to hedge its currency exposure or the money…

Q: Timothy Mother Ms. Parker find out her Monthly Rent is $496.00 every month but she owes $13,842.00…

A: The objective of the question is to find out how much more money Ms. Parker needs to take out from…

Q: A 27-year bond, with a price equal to 75% of its face value, offers annual coupons with the coupon…

A: The objective of the question is to find the maturity of a zero-coupon bond that has the same price,…

Q: Calculate the degree of financial leverage if price per units is 15.00. Please give your answer…

A: The degree of financial leverage can be calculated by dividing the earnings before interest and…

Q: Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he…

A: Inflation rate = 3%Savings available = $70,000Interest rate = 10%Annual payments at retirement =…

Q: The overhead volume variance of Modern Art, Inc. is $80,600 favorable. It indicates:

A: The overhead volume variance is a measure used in cost accounting to quantify the difference between…

Q: We are evaluating a project that costs $1,980,000, has a 7-year life, and has no salvage value.…

A: Units sold89100Selling price$38.55Initial cost$1,980,000useful life7 yearsSalvage value0.00Variable…

Q: Explain a cash flow statement?

A: The objective of this question is to understand what a cash flow statement is and its importance in…

Q: What happened to founder-owned U.S. firms as they grew? Control stayed with the founder-owners while…

A: In this question, we are required to determine the state of U.S. firms as and when they grew. We…

Q: Although appealing to more refined tastes, art as a collectible has not always performed so…

A: Number of years (n) = 2003 - 1998 = 5Future Value (FV) in 2003 = $10,351,500Present Value (PV) in…

Q: Pfender Guitars has a current annual cash dividend policy of $7.00. The price of the stock is set to…

A: Annual dividend = $7.00Return on stock = 8%Repurchase price of the stock (i.e future value) = $25

Q: A firm offers terms 3/15, net/60. Calculate the Annual Percentag Annual Percentage Rate (APY) is for…

A: APR stands for annual percentage rate, which is regarded as the nominal rate, and EAR stands for an…

Q: Raghubhai

A: The objective of the question is to restate the given net cash flows in real terms and then discount…

Q: You buy 1 put contract with a strike price of $60 on a stock which you own 100 shares. What are the…

A: Put option is derivative product which gives opportunity to sell stock on expiration but there is no…

Q: Jordan purchased a franchise agreement to distribute electronic gadgets for 8 years. The agreement…

A: The objective of this question is to calculate the Internal Rate of Return (IRR) for Jordan's…

Q: A delivery car had a first cost of $40,000, an annual operating cost of $18,000, and an estimated…

A: Annual worth consists of the annual operating cost and equivalent annual cost of first cost with…

Q: A 7% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current…

A: A bond provides the issuing organization access to debt capital from non-traditional sources such as…

Q: Stock in Cheezy-Poofs Manufacturing is currently priced at $90 per share. A call option with a $90…

A: solution in investing in stock :If stock price goes down 80, then loss % = -11.11%. Ifstock price…

Q: Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last…

A: Capital budgeting is a procedure of allocating the company's resources to value-generating projects,…

Q: Required: a.) Compute the company's expected profit (net income) for the upcoming fiscal period. b.)…

A: Contribution Margin -The contribution margin is a business's sales revenue less its variable costs…

Q: now. The project cost $14.1 million and the company paid $735 ddition, the equity issued had a…

A: Ratio analysis is quantitive method of getting inside review of an organisation for the purpose of…

Q: Derry Corporation is expected to have an EBIT of $3,350,000 next year. Depreciation, the increase in…

A: EBIT = $3,350,000Depreciation = $270,000Increase in working capital = $175,000Capital spending =…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: value of stock refers to the price taken by the investors for trading the stock in the market issued…

Q: Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: Do not provide solution in imge format. and also do not provide plagarised content otherwise i…

A: The objective of the question is to calculate the annual operating cash flow for ABC, Inc. for a new…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

When Maria Acosta bought a car 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
owe just after her payment at the 21-year mark? (Round your answer to the nearest cent.)
$

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction of mortgages:

VIEW

Step 2: Computation of amount owed at the end of year 2.5:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 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.)
When Maria Acosta bought a car 2 & 1/2 years ago, she borrowed $14,000 for 48 months at 8.4% compounded monthly. Her monthly payments are $344.42, 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.)
The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save $1,025 per quarter. If they deposit this amount in an account paying 3% interest compounded quarterly, how long will it be before they can purchase a home? (Solution should be entered in years accurate to the hundredths decimal place)
A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly installments for 6 years. If the interest rate on this loan is 5.5% per year, compounded monthly, what is the amount of each payment? (Round your answer to the nearest cent.) Submit Question
Ingrid wants to buy a $20,000 car in 8 years. How much money must she deposit at the end of each quarter in an account paying 5.5% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? $ (Round to the nearest cent as needed.)
Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20 years. A. What is the monthly payment? Emma has a payment of __?__a month. How much interest will be paid over the life of the loan? Emma will pay __?__ in interest over the life of the loan.
Linda Williams expects to need $ 42,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 6.25 percent in order to have $ 42,000 in six years? (Round answer to 2 decimal places, e.g. 52.75.) $ Present value
April borrows $20000 at an interest rate of 7% to purchase a new automobile. At what rate (in dollars per year) must she pay back the loan, if the loan must be paid off in 5 years? (Use decimal notation. Give your answer to two decimal places.) withdrawal rate: $ per year
Ingrid wants to buy a $16,000 car in 8 years. How much money must she deposit at the end of each quarter in an account paying 5.4% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Round to the nearest cent as needed.) C…...
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?
Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded monthly. She is planning to pay off the loan in 19 years, what will her monthly payment be? (Round all answers to 2 decimal places.) The monthly payment would be $. Assuming Paige paid all of the payments on time and did not prepay on the loan. What is the total amount Paige paid and the total interest? The total amount Paige paid was $ and the total interest was
A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per quarter, and she has found a credit union that pays 0.6% compounded quarterly. How long, in years, will it take her to save the money? Round your answer to the nearest hundredth.