Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could use the add-on method to calculate different borrowing options. Calculate the finance charge and monthly payment for the 6.5%, 3 Years: Finance Charge
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- Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could use the add-on method to calculate different borrowing options. Calculate the finance charge and monthly payment for the following 7%, 4 Years: Finance ChargeZachery Porter of Abilene is contemplating borrowing $10,000 from his bank. The bank could use the add on method to compute borrowing options. Calculate the finance charge and monthly payment for thke following 6.5% and 3 years.Mr samuel approached the arnett national bank for a 15,000 loan to purchase vehicle the bank charges interest at the rate of 18 percentage per annum for the duration of the loan the bank also charges the followin fees :BANK FEES 8 percent, stamp duty 0.1 percent,legal fees 7.5 percent, application fee 1 percent a 20 percent deposit of the amount of the loan must also be made if the loan is approved .Calculate: the total amount paid of the fees charged by bank
- You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?(Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 12 percent compounded quarterly or from a bank at 13 percent compounded daily. Which alternative is more attractive? If you can borrow funds from a finance company at 12 percent compounded quarterly, the EAR for the loan is entered in your response here -----%. (Round to two decimal places.) If you can borrow funds from a finance company at 13 percent compounded daily, the EAR for the loan is entered in your response here ------%. (Round to two decimal places.) Show excel formula/computation and manualIf you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year for 10 years, what is the annual interest rate on the loan? a) 12% d) 13.6% b) 18.9% e) 14.4% c) 15.9% How to solve using financial calculator?
- You will usually have choices of interest rates and loan term when seeking a loan. For the following, calculate the monthly payment and total interest over the loan term with each option.You need a $20,000 to buy a used car. Your bank offers a 3 year loan at 5%, a 4 year loan at 6%, and a 5 year loan at 7%.3 year loan at 5%: Monthly payment: $ Total: $ Total interest: $ 4 year loan at 6%: Monthly payment: $ Total: $ Total interest: $ 5 year loan at 7%: Monthly payment: $ Total: $ Total interest: $A4) Monthly Payments and Finance Charges or an Add-on Rate Loan Zachary Porter of Abilene, Texas, is contemplating borrowing $13,500 from his bank. The bank could use add-on rates of 7.0 percent for 3 years, 7.3 percent for 4 years, and 8.2 percent for 5 years. Use the following equation to calculate the finance charge and monthly payment for these three options. Round your answers to the nearest cent. For the 7.0 percent loan the finance charge would be $ . For the 7.0 percent loan the monthly payment would be $ . For the 7.3 percent loan the finance charge would be $ . For the 7.3 percent loan the monthly payment would be $ . For the 8.2 percent loan the finance charge would be $ . For the 8.2 percent loan the monthly payment would be $ .suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans, each requiring regular monthly payments. Installment loan A: 3-year loan at 5.9% Installment loan B: 5-year loan at 6.4% a.- find the monthly payments and the total interest for loan A b.-find the monthly payments and the total interest for loan B c.- compare the two loans. which is more economical?
- Dr. Dennis Natali plans to take advantage of a 0% interest balance transfer credit card offer to pay off a $7,250 loan he has. If his loan is at 7.5% interest for 12 months, what is his payment? How much will he save in interest? (Use Table 14.2) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. Payment Savings in interestSimple Simon's Bakery purchases supplies on terms of 1.1/10, net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 10.6% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) A. Simple Simon's should enter into the loan agreement but not begin taking the discount. B. Need more information to answer the question. OC. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. D. Simple Simon's should not enter into the loan agreement but should begin taking the discount.If your uncle borrows $70,000 from the bank at 12 percent interest over the ten-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)