You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR of 12%.   a. What is your monthly payment?        b. What is the effective annual interest rate on the loan?      c. Now assume the payments are made in five annual year-end installments. What annual payment would have the same present value as the monthly payment you calculated?

Q: You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be…

A: Use financial calculator:The present value of mortgage = 120,000The future value when all the loan…

Q: $5000 that you have to pay in 7 annual installments of $1100 each, the first one at the end of the…

A: The given problem relates to RATE function in excel. RATE function computes interest rate for no. of…

Q: You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You are obligated to…

A: Calculation of quarterly payments of the loan. Formula A = P (r (1+r)^n) / ( (1+r)^n -1 ) A =…

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: If you take out a 4 year loan for $16,500 at your bank and pay the quarterly payments for the 4…

A: Total interest is = total payments - loan

Q: Determine the monthly payment if you take out a loan for $ 330000 with an annual interest rate of…

A: in this we have to calculate present value FACTOR and than find out monthly payment.

Q: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: Determine the monthly payment if you take out a loan for $ 220000 with an annual interest rate of 9%…

A: Given information: Loan amount is $220,000 Annual interest rate is 9% Number of years is 15 years

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…

A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate =  2505,000×100%=5%

Q: You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business.…

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

Q: You owe $31,000 on student loans at an interest rate of 5.85% compounded monthly. You want to pay…

A: Information provided: Loan amount = $31000 Annual rate "r"= 5.85% Number of years "n" = 7 Number of…

Q: You are considering taking out a loan of 20,000.00 that will be paid back over 7 years with monthly…

A: given information  loan amount = 20,000  interest rate = 4.8% monthly interest rate = 0.004 no of…

Q: You borrow $6,275 from your friend at a nominal interest annual rate of 11.35% compounded weekly.…

A: Loan = 6275 Interest = 11.35℅ Weekly Compounding Number of compounding periods = 52 Annual Repayment…

Q: You go to buy a boat and the advertised loan interest rate is 7.72% compounded monthly for 5 years.…

A: Advertised interest rate = 7.72% monthly compounded

Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…

A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity:   An annuity is the series of payments which is received or paid for a fixed period of…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: You borrow $175,000; the annual loan payments are $10,120.27 for 30 years. What interest rate are…

A: Interest on a loan is the additional amount of money that a borrower has to pay back to the lender…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with monthly…

A: The amortization schedule outlines how each payment is allocated between interest and principal, and…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest :  It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…

A: Future Value = Present value ( 1 + i )n

Q: Suppose you take out a 30-year mortgage of $100,000 with a fixed interest rate of 5 percent. You…

A: given, p = $100,000 r = 5% m = 12 n = 30

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 27000 at the time…

A: Compound = monthly = 12 Present value = pv = $27,000 Interest rate = 8 / 12% Time = t = 10 * 12 =…

Q: If you need a loan for $16000 and make a down payment of 5%, then finance the balance with a 3-year…

A: A loan indicates the sum borrowed to meet the specific personal or business needs. The loan is…

Q: A worker is considering a loan of $97000 over 20 years at an interest rate of 7.9% p.a. with monthly…

A: The difficulty of distributing limited resources among numerous initiatives or investments is one…

Q: A loan of $11,300 is to be amortized with quarterly payments over 6 years. If the interest on the…

A: Time value of money is the concept where the value of money today is higher than the value of money…

Q: Find the monthly payment needed to amortize a typical $180,000 mortgage loan amortized over 30 years…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property with the…

Q: ou have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an…

A: First we need to use loan amortization formula below to calculate loan amount.wherePV = loan…

Q: What is the effective annual rate on the loan? (i.e., what is the interest rate once we take into…

A: Information Provided: Amount Borrowed = $400,000 Term = 30 years Fixed APR = 3.87%

Q: Define the annual percentage rate (APR). Suppose you borrow $3,621.15 and take out a loan with an 8%…

A: Annual Percentage Rate (APR)The Annual Percentage Rate (APR) is the yearly cost of borrowing money…

Q: Determine the monthly payment if you take out a loan for $ 180000 with an annual interest rate of…

A: Loan amount (PV) = $180,000 Interest rate = 8.25% Monthly interest rate (r) = 0.0825/12 = 0.006875…

Q: you are taking a $100,000 mortgage loan for your business to be repaid over 5 years in equal…

A: Mortgage loan is the loan which is given by keeping something as collateral. This loan is for…

Q: You borrow a GPM of $120,000 with annual payments and 30-year term. The interest rate is 10%. The…

A: To solve this problem, we can use the formula the present value of a growing annuity. The formula…

Q: You borrow a GPM of $120,000 with annual payments and 30-year term.  The interest rate is 10%. The…

A: Here's how you can solve this problem using Excel:a. Annual Payments for Years 1 to 30Set up a…

Q: You are considering taking out a loan of $17,000.00 that will be paid back over 5 years with monthly…

A: Here,ParticularsValuesLoan amount (PV) $ 17,000.00Term of loan 5.00Number of months in a…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Here,

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Month Instalment Interest Paid = Opening Balance  x 0.31% Principal Opening Balance Closing Balance…

Q: The terms of a loan call for monthly payments for 6 years at 9.6 percent interest. If you borrow…

A: The present Value of Ordinary Annuity refers to the concept which dictates today's value of a sum of…

Q: A personal loan for $20,000 has an interest rate of 12% over 5 years with monthly payments. What is…

A: Equated Monthly Instalment(EMI) means a part of the equally divided monthly amount paid for the…

Q: Assume you take a loan of $10,000 with interest of 5%/year compounded yearly. You intend to pay it…

A: First, determine the monthly payment of the loan using the Excel PMT function where the ‘RATE’ is…