A student is buying a new car. The car’s price is $37,500, the sales tax is 6%, and the title, license, and registration fee is $1250 to be paid in cash. The dealer offers to finance 95% of the car’s price for 48 months at a nominal interest rate of 9% per year, compounded monthly. (a) How much cash is paid when the car is purchased? (b) How much is the monthly payment?

Q: Panpan purchased a car. She paid ₱250,000.00 as down payment, and ₱5,500.00 payable at the beginning…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

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: What monthly payment will be required for the individual to make if the car is financed over a…

A: Compound interest is the amount of interest paid on interest which will grow the interest on loans…

Q: A purchased a small condominium. He paid P350,000 as a down payment and agreed to pay P35,000 every…

A: Down payment = P350,000 Quarterly payment = P35000 Interest rate = 12% Quarterly interest rate =…

Q: What monthly payment will she be required to make if the car is financed over a period of 24 months?…

A: Loan Monthly Payments: These are payments made by the borrower to the lender for the purpose of…

Q: After deciding to acquire a new car, you can either lease the car or purchase it with a three-year…

A: Lease is a way to get the asset for a fixed time period by paying periodicals payments to other…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: In order to purchase another truck, Beatty Transport recently obtained a $125,000 loan for five…

A: Given Information:Loan amount is $125,000 Number of years is 5 Interest rate is 7.8% (semi-annual)

Q: A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his…

A:

Q: Your company will generate GH¢ 55,000 in annual revenue each year for the next eight years from a…

A: As per our policy, we only answer up to one question when many are provided. The first question is…

Q: A regional furniture company is offering either a discount equal to twice the state sales tax or…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: You go to a phone dealer to buy a new car for 22,000 pesos financed at 3.4% APR, compounded monthly,…

A: The monthly payment can be calculated with the help of present value of annuity function

Q: You are purchasing a $18,000 used automobile, which is to be paid for in 36 monthly installments of…

A: Given:

Q: 1. You and the dealer have agreed upon the purchase price for a new automobile. The purchase price…

A: Loan: It is the amount that the lender gives to the borrower & in return charge interest on…

Q: A buyer is considering purchasing a 10-acre parcel in Peoria, Arizona for economic development. The…

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

Q: and the interest is 12% compounded monthly

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment.…

A: Cost of house = $100,000 Down payment = $20,000 Interest rate = 9% Time period = 20 years  Payment…

Q: Smith has arranged for a mortgage loan of $200,000. The annual rate on the loan is 12%. The bank…

A: Present value of annuity is basically the present value of all the cash that occur in future.

Q: It costs about $39,716 per year to attend Georgia Law School (including tuition, off- campus room…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: Suppose you purchase an automobile for a selling price of $32,000. You make a down payment of 5% of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Mr Ahmad wants to borrow $30,000 for a delivery Van for his Bakery business, which is rovided by…

A: Amount to borrow is $30,000 Interest rate is 9% per year Compounded monthly Time period is 5 year To…

Q: The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the…

A: Price of car = $ 32,000 down payment = 25% interest rate = 8% number of payments =24 Number of…

Q: A buyer is considering purchasing a 35-acre parcel in Apache Junction, Arizona for economic…

A: Solution: As per the terms and conditions of the loan, the loan can be repaid in equal periodic…

Q: A'couple'found'a'house'selling'for'$113,500.''The'taxes'on'the'house'are'$1400'per'year,'and'insuarn…

A: A mortgage is a loan on a property where the property itself is used as collateral in case of…

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: 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: The Fly-by-Night finance company advertises a “bargain 6%plan” for financing the purchase of…

A: Effective interest rate is the rate that is paid to a loan or earned on an investment as a result of…

Q: A historian for the American Math Museum has a 5-year car loan for which the monthly payment is…

A: Using excel PV function

Q: The price of a new car is $40,000. Assume that an individual makes a down payment of 25% toward the…

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

Q: In August​ 2008, a car manufacturing company was offering the choice of a 3.3​% loan for 72 months,…

A: A study that proves that the future worth of the money is lower than its current value due to…

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: The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the…

A: Price of car=$20,000 Down payment=25%=$5,000 Amount financed=$15,000 Interest rate=4.2% p.a.…

Q: Suppose you purchase an automobile for a selling price of $1,600,000.  You make a down payment of 5%…

A: The total cost of an automobile includes the selling price of an automobile, sales tax, and license…

Q: To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the…

A: The APR is the annualized measure of the costs of borrowing, the APR will increase when the cost of…

Q: n payment and 15,000 every month. If the payments are based on 7% compounded quarterly what is the…

A: Given information :   Down payment  $        99,000.00 Periodic payment 15000 Interest rate…

Q: An employee is earning P12,000 a month and he can only afford to purchase a car which will require a…

A: Down payment (D) = P 10000 Monthly payment (M) = 30% of P 12000 = P 3600 r = 18% per annum = 1.5%…

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: Interest rate charged is calculated by RATE function in excel. Commission from car dealer is paid on…

Q: he price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the…

A: Repayment of loan is made in fixed amount of instalments which includes interest and part of…

Q: You intend to purchase a new car upon graduation in two years. It will have a cost of RM29,371,…

A: Amount in the account where funds are compounded monthly can be calculated as: = Amount Deposited*…

Q: A new engineer buys a car with 0% down financing from the dealer. The cost with all taxes,…

A: Information Provided: Total costs = $15,732 Number of payments = 48 Payment amount = $398

Q: An employee is earning P 18,511 a month and he can only afford to purchase a car which will require…

A: salary =18511 monthly payment =0.3×18511=5553.3 monthly payment =5553.3 Period =4 years =48 months…

Q: David is borrowing $150,000 from Hartford Bank to open Road and Off-Road Bicycle Shop. David expects…

A: Answer:

Q: Lush Gardens Co. bought a new truck for $50,000. It paid $5,000 of this amount as a down payment and…

A: Cost of truck = $50,000 Down payment = $5000 Loan amount (PV) = 50,000-5000 = $45,000 Interest rate…

Q: An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for…

A: To open goal seek, firstly go to Data, followed What-if analysis & then goal seek.

Q: A bank teller negotiated a purchase price of $22,350 for a car. In addition to the purchase price,…

A: We first need to figure out the total cost of the car and then the amount of loan. We will then use…

Q: You have a down payment of $10,000 saved up to purchase a new vehicle. If you are also approved for…

A: Down payment for a purchase is the immediate cash amount paid by the buyer. A series of payments of…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.