Gerritt wants to buy a car that costs $31,250. The interest rate on his loan is 5.69 percent compounded monthly and the loan is for 6 years. What are his monthly payments?

Q: Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months…

A: Calculate the present value of loan as follows: Present value of loan is $27,731.31

Q: Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and…

A: Equated monthly installment or EMI is referred to as the amount that are paid in monthly basis…

Q: Mr. Cama borrowed one million pesos from a bank to buy a house which he would pay in 15 years. How…

A: Calculation of monthly payment to be paid on the loan if compounded annually::: Cost of the…

Q: Jim made a down payment of 2500 dollars toward the purchase of a car. To pay the balance of the…

A: Given information: Down payment is $2,500 Nominal interest rate is 4% compounded monthly Payment of…

Q: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…

A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…

Q: Felipe and Suzie want to calculate the difference in monthly payments on a $110,000 home as a result…

A: Using excel PMT function

Q: Fatimah pays monthly rent of $520 for her townhouse. If she bought the property, the mortgage loan,…

A: When a series of deposits or payments are made of equal amounts at equal intervals of time, it is…

Q: how long will it take him to pay off

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: 6. Genesus wants to buy a car. Her monthly income is $800, and she already has a credit card payment…

A: Debt to income ratio Monthly recurring debt / Gross monthly income

Q: Mr. Smith has borrowed $20,000 from the bank to start his small book-keeping business. He has…

A: Using excel RATE function

Q: Jon buys a car for $25,000. He pays $5000 down and pays the balance in 60 equal monthly payments. If…

A: Computation:

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

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

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Time value of money is the concept that says the monthly savings will increase portfolio value at…

Q: A college student, needs to borrow $5,000 today for his tuition bill. He agrees to pay back the loan…

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Q: Crispin wants to buy a motorcycle. His mother will loan him some money at only 6% compounded…

A: Given, The rate is 6% compounded quarterly. Amount to be repaid is P3600 in 2 years

Q: Jim has an annual income of $300,000. Jim is looking to buy a house that has monthly property taxes…

A: Here,

Q: William recently graduated from NFA University. While at NFA, William took out 4-23 a $50,000…

A:

Q: David Abbot is buying a new​ house, and he is taking out a 30​-year mortgage. David will borrow…

A: Taxation refers to the imposition of compulsory financial obligations by the government on…

Q: Bob can afford car payments of $365 per month for 4 years. If the interest rate is 4.9 percent, how…

A: Amount he can afford to borrow is present value of monthly payments

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A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

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A: An installment amount is a periodic amount paid to repay a loan. The installment amount includes…

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A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly  PMT find out using Excel:…

Q: Jackson has a loan that requires a $16,600 lump sum payment at the end of four years. The interest…

A: The amount borrowed today can be computed using the present value function.

Q: Johnny has a loan for $50,000 at a rate of i(4) = 8% on which he makes quarterly payments of $2,000.…

A: Amount of deposit every 3 months: $500 starting from today at a rate of interest of 1% effectively.…

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th…

A: a) Value of chevy malibu = $12,500 Down payment =$1,000 Loan Amount =$12,500 -$1,000 Loan amount…

Q: Danny wants to save some money using the following schedule. Starting today, he will make $100…

A: Future value of annuity ( FVA) is stream of recurring cashflow compounded at specified rate to…

Q: In 6 years Harry and Sally would like to have $24000 for a down payment on a house. How much should…

A: In this question we need to compute the each month deposit to have $24000 for down payment in 6…

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A: It is an example of simple interest. An interest of 20%/12 is given every month on $1000 for a…

Q: When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25…

A: Loan amount (PV) = $315,700 Interest rate = 4.2% Monthly interest rate (r) = 4.2%/12 = 0.35% Period…

Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…

A: The amount of interest paid is calculated as difference of total payments less present value of…

Q: Cindy and Rick purchased a home for $145,000 and financed it with a 30-year fixed-rate loan at 6.25%…

A: Introduction Mortgage Loan: A mortgage is a loan that a borrower takes out to buy or retain a house…

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A: Property taxes are the taxes which are required to be paid by an individual for holding the…

Q: what is the highest price he can afford to pay for a car?

A: Monthly Payment: It is the payment made on the loan amount borrowed. The monthly payment comprises…

Q: Darwin is a young entrepreneur trying to keep his business afloat. He has missed two payments to a…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Pat bought a home for $165,000 and made a $25,000 down payment. She got a fixed rate mortgage at 5%…

A: Computation:

Q: Julia has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is…

A: Number of years is the period taken for the repayment of loan taken. Loan amount $150,000 Monthly…

Q: Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…

A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…

Q: Skylar bought a $270,000.00 house, paying 10% down, and financing the rest at 3% interest for 15…

A: A mortgage is a form of secured loan that is meant to be used to purchase or maintain real estate.…

Q: Grandma Riley wants to help Scott while he's in college by giving him a S220 monthly allowance for 5…

A: Time Value of Money:The time value of money is the idea that the value of money received today will…

Q: Mike has a credit card balance of $30,000. The annual interest rate is 17%. He is required to pay a…

A: Credit Balance  $  30,000.00 Annual Interest Rate  17% Minimum Payment 4% or  $        50.00…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.