10. Maria can afford a $325 per month car payment. She can get a loan at 5.25% interest for 6 years compounded monthly. a. What formula will you use to find the maximum price for the car she can afford? Write the formula in the space below. Write the variables and what they are equal to. Solve the problem. Round to the nearest hundredth.

Q: Suppose you have selected a new car to purchase for $19,500. If the car can be financed over a…

A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.

Q: Suppose you finance a $10000 car over 8 years at car an interest rate of 14% per month. How much is…

A: Loan amount (PV) = $ 10000 Period = 8 Years Number of monthly payments (n) = 8*12 = 96 Interest rate…

Q: You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted…

A: given, p=$74400 r=6.8% m=12 n=4 years (4812)

Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: 14. Louis is looking at buying a car for $20,000. The term for the loan is 6 years, and the interest…

A: Car value = $ 20000 Down payment = $ 2500 Loan amount (PV) = 20000-2500 = 17500 Annual interest rate…

Q: how much can they spend on the home at each of the following rates? (

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $…

A: Information Provided: Price = $475,000 Term = 30 years Interest = 5.54% Down payment = 25%

Q: You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: 10. You are making car payments of $315/month for the next 3 years, you know that your car loan has…

A: Time Period = N = 36 months (3 years) Monthly Payment = 315 Interest Rate = 12.4%/12 per month

Q: how many years will it take her to pay back the loan?

A: A person defers his or her current payment liability via loan. A loan is provided by a bank, who…

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information: Future value of car : 255000 Time period : 4 years Interest rate : 14%

Q: You are buying a home that cost $110,000 and are putting 20% down to avoid PMI. What would their…

A: Cost of house is $110,000 , down payment is 20% of cost = $22000. Therefore, loan amount is $88,000.…

Q: 1. Lina wants to remodel her kitchen. Her contractor has quoted her $2,500 for the project. Lina…

A: Data given: Principal = $2500 Interest rate = 2% monthly Payment per month = $250

Q: Sue decides to start saving money for a new car. She knows she can invest money into an account…

A: According to time value of money, FV=PV×1+RMM×N Where, PV = present value R = rate of interest M=…

Q: You look at your budget and decide that you can afford $290 per month for a car. What is the maximum…

A: Annuity payment (P) = $290 Monthly interest rate ( r ) = 0.25% (3%/12) Number of Periods (n) = 60…

Q: You want to buy a $195,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The loan amount would be price of home less down payment. Monthly payment =Loan amountPVAIF (…

Q: Suppose you want to buy a new house. You currently have $15 000 and you figure you need to have a…

A: Current amount (P) = $15000 House cost = $150000 Down payment and closing costs needed (F) = (10% +…

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given data; down payment amount = $3000 monthly payment = $400 Annual interest rate = 12% number of…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13%…

A: Solution:-  When a loan is taken, it can either be repaid as a lump sum payment or in instalments.…

Q: You are buying a car. You pay $15,000 today and $200 a month for three years. If the annual rate of…

A: Given, Amount paid for the car $15,000. Annual rate is 8%. monthly payment is $200. Term is 3 years.…

Q: If Sam can afford payments at $390 per month for 6years. what is the price of a car that she can…

A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

Q: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: Today, your dream car costs $54,500. You feel that the price of the car will increase at an annual…

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

Q: he McBertys have $30,000 in savings to use as a down payment on a new home. They also have…

A: The question is based on the concept of mortgage loans. The mortgage loan is a secured type of loan…

Q: Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making…

A: Car cost = Future Value Required = 40,000 Time Period = 60 months Monthly Deposit = ? First Month…

Q: Kristi Perez puts $10,500 into an account to save money to buy a car in 12 years. She expects the…

A: We require to calculate the interest rate from following details given in the question: Current…

Q: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

Q: You are saving money to buy a car.  If you save $310 per month starting one month from now at an…

A: Interest rate is 6% Monthly saving is $310 Time Period is 4 years

Q: In order to purchase a brand new set of living room furniture, you take out a loan from the bank at…

A: Cash price is the present value of quarterly payment made at the of the quarter.

Q: You decide to buy a car for $16,000.00 and decide to make payments of $700 each month. If the loan…

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

Q: Jenny is thinking of buying a car costing $120,000 (including COE) as she is already spending about…

A: Effective annual interest rate (EAR) is one of the most important financial concepts that reveals…

Q: Unfortunately it costs $25,000, it you want to the purchases the car in five years and in the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Suppose you have a student loan of ​$50,000 with an APR of 12​% for 40 years.   Complete parts​ (a)…

A: Student Loan Amount (P) = $50,000 APR (r)= 12%  or 0.12 n = 12 because payment is monthly  Time ( t)…

Q: how much must he put down? (Round your answer to the nearest cent.)

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: An investment product offers a monthly rate of return of 5%. If Amy invests $1,000 today for this…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You found the perfect car but costs $30,000. How much is your monthly payments if your bank charges…

A: Principal loan amount (P0) = $30,000 Monthly interest rate (r) = 0.00208333333333333 (i.e. 0.025 /…

Q: You have saved RM 4,000 for a down payment on a new car. The largest monthly payment you can afford…

A: Given: Given:

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

Q: You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: You have saved $4,000 for a down payment on a new car. Thelargest monthly payment you can afford is…

A: Given information: Down payment $4,000 Monthly payment of $350 APR is 12% Number of months 48 and 60

Q: Pick a car that you would like to purchase one day. а. How much does the car cost? b. You plan to…

A: The loan along with other details on monthly payment have been solved below.

Q: You are interested in a car which costs $25,000. You have a $2000 down payment, and you have a found…

A: A loan is amortized by paying equal monthly installments comprising Principal and interest. Total…

Q: Steve Fisher is saving for a new car. He needs to have $ 21,000 for the car in three years. How much…

A: Present worth is the value of the amount in current times that is expected to be received in some…

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.