You purchase a washing machine and dryer for P750. You pay 20% down and agree to repay the balance in 12 equal monthly payments. The finance charge on the balance is 8% simple interest. a. Find the finance charge. b. Estimate the annual percentage rate. Round to the nearest tenth of a percent.

Q: After selling a bunch of old "junk" on e-bay, you have $500. You deposit the money into an account…

A: The annual percentage rate incorporates all the fees, charges, interest, rewards, and payments that…

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: Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid…

A: Variables in the question:Loan=$2770Rate=6.7%N=5 year

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The idea of a time value of money (TVM) holds that a quantity of income is valuable greater now than…

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: You purchase an RV by making a down payment of $10,700. The terms of your finance agreement have an…

A: The down payment is $10,700 The annual interest rate is 2.66% compounded monthly The total number of…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

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: A car loan of $23,800 is to be repaid with bi-weekly payments of $164. How many payments are…

A: Loans are paid by the equal periodic installments and these installments carry the payment for…

Q: If you buy a computer directly from the manufacturer for $2,815 and agree to repay it in 36 equal…

A: Present value = pv = $2815 Compound = monthly = 12 Number of payment = n = 36 Interest rate = r =…

Q: onsider a credit card with a balance of $8500 and an APR of 14.5%. If you want to make monthly…

A: The objective of this question is to calculate the total amount paid over 11 years to clear off a…

Q: nk will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of…

A: Effective interest rate is the interest rate after considering the impact of compounding on interest…

Q: You are planning a $50,000 capital investment in your rental property in 7 years' time. If you…

A: The amount of annuity should be deposited such that it accumulates to a certain future value. This…

Q: Stan Slickum has a used car that can be bought for $8,500 cash or for a $2,000 down payment and $750…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You make a one-time $3,088 deposit into an account which pays 2.8% compounded weekly. If you don't…

A: using excel fv function

Q: ou could earn 3% on your money in your checking account, as long as the minimum balance does not…

A: The cost of checking account is the total cost which one has to bear for not maintaining the minimum…

Q: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the…

A: a-1Present value = Cash flow/(1+interest)^number of years that is present value=

Q: Suppose that you decide to borrow $14,000 for a new car. You can select one of the following loans,…

A: For people, companies, and organizations all need money so they can use the loan option as loans are…

Q: The price of a car is OMR 6,500. After a down payment of OMR 500, the remaining balance is financed…

A: Car price = OMR 6,500 Down payment = OMR 500 Loan amount = OMR 6,500 - OMR 500 = OMR 6,000 Total…

Q: In one year you will receive 1800. In two yeara you will receive 1, 900. The discount rate is 4%.…

A: PV = FV / (1 + r)nWhere:PV is the present valueFV is the future valuer is the discount rate (here,…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…

Q: You take out a 5-year car loan for $16000 at a 6% interest rate. Calculate the fixed monthly payment…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Suppose the lender of $2,000 uses add - on interest method (Rule 78 loan) and also charges 9%, what…

A: The objective of the question is to calculate the monthly payment and the total cost of a loan of…

Q: If you buy a computer directly from the manufacturer for $3,237 and agree to repay it in 48 equal…

A: a loan, payments made by the borrower are typically applied first to the interest owed, and then to…

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: How much is the fee if you need to borrow $400,000 for one year with $475,000 line credit, where any…

A: The fee for unused credit is calculated as the unused credit multiplied by the charge for unutilized…

Q: You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments…

A: Monthly Payment (PMT) = P * r * [ (1 +r)n /({1 + r}n -1)] Where P = Principal amount borrowed…

Q: SM corp has loaned you P1,000. The interest rate you must is 20% compounded monthly. The loan will…

A: Given: Loan amount =P1,000 Interest rate = 20% Periods = 24 Compounding = monthly

Q: Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a…

A: Discount rate is 30% nominal monthly Monthly rate is  30%12=2.5% Total number of payments are 15…

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: To borrow $3,400, you are offered an add-on interest loan at 9.6 percent with 12 monthly payments.…

A: Effective annual rate of return is the interest rate with compounding effects.

Q: You can afford monthly deposit of $160 into an account that pays 4.8% compounded monthly. How long…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: wish to save $25,000 by depositing $200 at the end of each month. If the interest rate is 3%…

A: Future value of money is the amount of deposit made and the amount of interest accumulated over the…

Q: Assume you are taking out a 6-year loan at a rate of 3.5% for this car. a. Compute the monthly…

A: Present value is the estimation of the current value of future cash value which is likely to be…

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: A new furniture set costs $ 2700. If you make a down payment of $ 300 and finance the rest at a rate…

A: The amount of repayment is the number of installments multiply by the installment amount. and the…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.