A student bought a $75 used guitar and agreed to pay for it with a single $80 payment at the end of 3 months. What is the nominal annual interest rate? What is the effective interest rate?

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…

A: The question can be solved as follows:

Q: Angela read an advertisement for a P50,000 loan. The ad informs the borrower that the company only…

A: Interest = Principal × Interest rate = 50,000(0.18) = 9000 Interest per annum = 9000

Q: On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest.…

A: Given the following information: Principal amount: $12,000 Interest rate: 5% Time period: From…

Q: Doug Black bought a jet ski with a 8% add-on interest installment loan from his credit union. The…

A: PURCHASE PRICE = $1950 DOWNPAYMENT = 15% AMOUNT FINANCED = 1950 x (1-0.15) AMOUNT FINANCED = $…

Q: Mary bought a bike payable monthly for 10 months starting at the end of the month. How much is the…

A: Mortgage is a loan to buy an asset. The cost of the asset will be paid in equal instalments of…

Q: In Aug. 2007, Irene Engels borrowed $50,000, and she borrowed another $50,000 in Aug. 2008, for…

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

Q: An auto dealer agrees to sell a used car for $1,000 down and payments for 3 years at $550 per month.…

A: according to the question given, downpayment = $1000 monthly payment (A) = $550 interest rate (R) =…

Q: Joseph received a loan of $40,000 from the bank at 4.25% compounded monthly. If she had to repay…

A: Mortgage/ Borrowings:  Borrowings are the loans taken by an individual, from banks or non-banking…

Q: Jessica borrowed $3300 from the bank in order to buy a new piano. She will pay it off by equal…

A: To calculate the weekly installment we have to use the proportionate interest rate and period…

Q: Richard purchased a car which had a selling price of 7200. He paid 30% down and agreed to pay 240 RO…

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

Q: A certain college graduate borrows 8658 dollars to buy a car. The lender charges interest at an…

A: Installment is the amount of periodic payment a borrower has to make to its lender in order to pay…

Q: Matt purchased a car for 22,000 he paid 4400 as a down payment and financed the balance at 3.7%…

A: given, price of car = 22000 downpayment = 4400 r=3.7% m=12 (monthly compounding) n=5 years

Q: Huan accepted an in-store loan on a computer she just purchased. The monthly payment is $64.53 on…

A: Loan is an agreement between lender and borrower where lender provide borrower with funds in…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: Suppose that you take out a federal direct loan on September 1 before your senior year for $7500…

A:

Q: purchase a specialty guitar for his band, for the last three years JJ Morrison has made payments of…

A: Solved using Financial Calculator  Money accumulated at the end of Year 3 PMT = +/- 98 N = 3*12 = 36…

Q: uston purchased a wall unit for $2,200. He made a $600 down payment and financed the balance with an…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Mary bought a bike payable monthly for 10 months starting at the end of the month. How much is the…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: Nesrin, purchased a new car for $9,420, paying $3,000 down payment and agreeing to 12 monthly…

A: Credit rate:  The amount charged for a credit loan or purchase is usually represented as a…

Q: A student borrows $6000 at 10% for 6 months to pay tuition. The total amount due after 6 months is $…

A: To calculate the interest amount we will use the below simple interest formula   Total amount due =…

Q: A woman went to the Beneficial Loan Company and borrowed $10,000. She must pay $323.53 at the end of…

A: EAR or Effective annual rate is  yearly rate computed after taking into account all the compounding…

Q: A student purchases a laptop computer by obtaining a simple interest loan. The computer costs…

A: Computer cost (C) = P 35000 Interest rate (r) = 8% Total weeks in 1.5 years (n) = 52 * 1.5 = 78

Q: You will be in graduate school for the next two years. You borrowed some money from the bank for…

A: Monthly Payment  $   950.00 Monthly payment increase by 2% Time period  5 Beginning of payment…

Q: Sylvie Cardinal bought a business for $45 000. She made a down payment of $10 000 and agreed to pay…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You borrowed $5,000 to finance your educational expenses at the beginning of your junior year of…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: Samuel Ng received a 3-year subsidized student loan of $15,000 at an annual interest rate of 4%.…

A: Given that: Loan Amount (A)= $15000 Time(t)= 3 years Number of payments per year (n)= 12 Annual…

Q: Dave Krug finances a new automobile by paying $6,500 cash and agreeing to make 40 monthly payments…

A: Present value: It refers to today’s value of the money that will be received by an investor at some…

Q: april loaned her friend $750 to buy a guitar. he agreed to pay it back with 5% annual interest at…

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

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Financing an item provides a facility to the purchaser to make the payment of the item in small…

Q: Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Warlo bought a laptop that is payable by monthly installment of ₱1,800 for 12 months starting at the…

A: Monthly payment = P 1800 Number of monthly payments = 12 First payment = After 2 months Annual…

Q: A college student receives an interest free loan of $8250 from a relative. The student will repay…

A: Amount remaining to be paid is given by: Amount remaining to be paid = Actual amount - Amount paid…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: In order to pay for school, you borrow $22,000 at 12 percent/year compounded monthly. You do not pay…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her…

A:

Q: A car was purchased for $6400.00 down and payments of $445.00 at the end of each month for 6 years.…

A: The outstanding loan amount at any point in time will be the present value of the remaining monthly…

Q: Samuel Ng received a 3-year subsidized student loan of $12,000 at an annual interest rate of 5%.…

A: Computation of monthly loan payments:

Q: A friend purchased a new sound system that was selling for $4200: He agreed to make a down payment…

A: The series of payments discussed here is a form of annuity where the fixed amount of cash flow is…

Q: Don James purchased a new automobile for $20,000. Don made a cash down payment of $5,000 and agreed…

A: The remaining amount of $15,000 is the difference in total cost, $20,000 and down payment, $5,000.

Q: A university is giving loans of $200,000 to its staff for a period of 5 years at 13.5% annual…

A: 1. given, Loan amount = $200,000 no of period = 5 years APR = 13.5% PMT FORMULA: PMT =…

Q: A student takes out a short-term loan to pay for tuition, books, and supplies. If the simple…

A: Total repayment = Principa amount + Interest on loan

Q: A student has a savings account earning 9% simple interest. She must pay $1800 for first-semester…

A: Simple interest: As the name indicates it is a simple interest computed on the amount of principal.…

Q: interest installment loan from his credit union. The purchase price was $1,950. The credit union…

A: The minimum monthly payment on a revolving credit account is the minimal amount a customer may pay…

Q: Tom purchased a laptop through the credit cooperative of their company. The cooperative provides an…

A: Here, Monthly Payment is 2,700 Payment Period is 18 months Interest Rate is 8% Compounding Period…

Q: A student takes out a loan for $40,000 and loan repayment is to begin after 6 years. Interest during…

A: Here, Loan Amount is $40,000 Interest Rate is 3% Compounding Period is Monthly i.e 12 Repayment of…