You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.

You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.

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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You are looking to buy a car. You can afford $600 in monthly payments for five years. In addition to the loan, you can make a $700 down payment. If interest rates are 9.25 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
You want to borrow $59,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100 but no more. Assuming monthly compounding, what is the hughest rate you can afford on a 66-month APR loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places
Suppose Mary Grace needs to borrow $8,900 for the purchase of a car and is considering two loan options. Loan A is a four-year loan at 7.6% interest while loan B is a seven-year loan at 7.9% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ .The total interest paid for Loan A is $ .Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ .The total interest paid for Loan B is $ .Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Mary Grace will experience if she chooses the lower-cost loan option.Savings = $ Hint: Related FormulaThe loan payment formula for fixed installment loans is given by the…
Suppose Lydia needs to borrow $24,200 for the purchase of a car and is considering two loan options. Loan A is a seven-year loan at 8.8% interest while loan B is a six-year loan at 8.3% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ Incorrect.The total interest paid for Loan A is $ Incorrect.Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ Incorrect.The total interest paid for Loan B is $ Incorrect.Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Lydia will experience if she chooses the lower-cost loan option.Savings = $
You want to borrow $59,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100 but no more. Assuming monthly compounding, what is the hughest rate you can afford on a 66- Training month APR loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places
You borrow $22541 to buy a car. You will have to repay this loan by making equal monthly payments for 14 years. The bank quoted an APR of 6%. How much is your monthly payment (in $ dollars)? I'm not sure how the answer is 198.6394, Can you explain that to me on the financial calculator, please? Thank you :)
Watch the video and then solve the problem given below. Click here to watch the video. You are considering a loan with an annual rate of 8%. The mortgage is $130,000 with 180 monthly payments of $1242.35 for 15 years. Complete the first two months of the amortization table. (Simplify your answers. Round to the nearest cent as needed.) Payment number Interest payment Principal payment Balance of loan 1
You are looking to buy a car. You can afford $225 in monthly payments for five years. In addition to the loan, you can make a $500 down payment. If interest rates are 5.80 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Give typing answer with explanation and conclusion Suppose your gross monthly income is $5,900 and your current monthly payments are $575. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)
You are looking to buy a car. You can afford $370 in monthly payments for four years. In addition to the loan, you can make a $1,800 down payment. If interest rates are 9.00 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per month, and the total finance charge is $9,432. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) $ 8938.537
You want to buy a car and you want your payments to be $500 per month. You can finance the car for 1.5% interest for 6 years. How much are you able to borrow for the loan? Assume monthly compounding. Do not enter the negative sign from your calculator (if there is one) or the dollar sign. Round to two decimal places.

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