10. Tammy purchased a vehicle for $35,000 two years ago using a 5 percent, 5-year loan. She has decided that he would sell the car now, if she could get a price that would pay off the balance of her loan. What is the minimum price Tammy would need to receive for her car? 11. Give the same information in #10, when Tammy made her 24th payment what was the payment amount, interest paid and principle paid?

10. Tammy purchased a vehicle for $35,000 two years ago using a 5 percent, 5-year loan. She has decided that he would sell the car now, if she could get a price that would pay off the balance of her loan. What is the minimum price Tammy would need to receive for her car? 11. Give the same information in #10, when Tammy made her 24th payment what was the payment amount, interest paid and principle paid?

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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Similar questions

9. Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for 30 years at 6%. a. What is Jason’s monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment $ b. What is the total interest cost of the loan? (Use the amortization worksheet on the financial calculator.) Total interest cost $
Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years at 5 1/2 %. What are Jen’s monthly payment and total interest cost of the loan? PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =
(i) Mimie borrowed $8500 from her parents to buy a ride-on mower so she could start her mowing business. They agreed that simple interest would be charged at 2.5% pa. and that she would pay off the loan in 5.5 years. What was the total interest paid by Mimie on her loan?
14. Nadia takes out a loan of $150,000 to purchase an apartment. The loan is being charged a yearly interest rate of 2.5% applied monthly. Nadia is paying off the loan by making monthly payments of $500.00. (a) How much of Nadia's first payment goes towards paying interest and how much of it goes towards reducing the initial $150,000 loan amount? Show how you found your answers (b) Did Nadia reduce the loan amount she owed more in the first payment or the second payment? Justify.
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
2. Assume Josephine purchases a home for $180,000 and has a 20% down payment. If she finances the purchase with a 30 year mortgage with a 4% interest rate……what is her monthly payment? If she pays the mortgage through the entire term with no early payment, how much interest will she pay over the life of the loan?
14) John borrowed $12,000 to buy a new car and expects to pay $564.87 per month for the next 2 years to pay off the loan. What is the loan's rate of interest?
6. Mahmoud has to pay three equal payments of $50,000 for a house he is buying, The payments are at the end of year five, 10 and 15, respectively. If the interest rate is 14% how much would he take as a loan to pay for the house? b. а. If Mahmoud decides to pay the remaining balance after paying the second installment in year 10 immediately, how much would he pay at the end of year 10 as repayment for the unpaid balance?
Susanna wants to purchase a house costing $203,346. She plans to put $49,498 toward a down payment and finance the rest at 3.2% payable monthly for 30 years. If she stays with this payment schedule for the entire 30 years, how much will she actually pay for the house including down payment and interest? *PLEASE GIVE BOLD AND CLEAR ANSWER, THANK YOU!*
Rita borrows $2000 from her parents. She repays them $2600. What is the interest rate if she pays the $2600 at the end of (a) Year 2? (b) Year 3? (c) Year 6? (d) Year 10?
PLEASE ANSWER THE QUESTIONS BELOW AND BE SURE TO SHOW THE FORMULAS AND THE WORK. THANIK YOU :) 1) Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments, plus 9% compound interest on the unpaid balance. What will these equal payments be?
Mia Sato purchased a new condominium for $225,000. The bank required a $40,000 down payment. Assume a rate of 6% on a 30-year mortgage. What is Mia’s monthly payment? What is Mia's total interest cost if she pays each payment as scheduled for 30 years? Explanation of how to determine the solution to the problem and the correct answer, please.

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