TABLE14.2Loan amortization table (monthly payment per $1.000 to pay principal and interest on installment loan)Terms inmonths7.50%8%8.50%9%10.00%10.50%11.00%11.50%12.00%$170.34$170.58S170.83$171.20$171.56$171.81S172.05$172.30$172.551286.7686.9987.2287.4687.9288.1588.3888.6288.851858.9259.1559.3759.6060.0660.2960.5260.7560.982445.0045.2345.4645.6946.1446.3846.6146.8447.073036.6636.8937.1237.3537.8138.0438.5138.753631.1131.3431.5731.8032.2732.5032.7432.9833.214227.1527.3827.6227.8528.3228.5528.7929.0329.284824.1824.4224.6524.7725.3625.6025.8526.0926.335421.8822.1222.3622.5923.0723.3223.5623.8124.066020.0420.2820.5220.7621.2521.4921.7421.9922.24TABLE14.2(concluded)Terms inmonths12.50%13.00%13.50%14.00%14.50%15.00%15.50%16.00%$172.80$173.04$173.29$173.54$173.79$174.03$174.28$174.531289.0889.3289.5589.7990.0290.2690.4990.731861.2161.4561.6861.9262.1562.3862.6262.862447.3147.5447.7848.0148.2548.4948.7248.963038.9839.2239.4639.7039.9440.1840.4240.663633.4533.6933.9434.1834.4234.6734.9135.164229.5229.7630.0130.2530.5030.7531.0031.254826.5826.8327.0827.3327.5827.8328.0828.345424.3124.5624.8125.0625.3225.5825.8426.106022.5022.7523.0123.2723.5323.7924.0524.32Σ Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.)(Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.)Number ofPurchase priceof a used carDownmonthlyAmountTotal of monthlyTotal financepayment$90paymentsfinancedpayments$5,884.00charge$1,839.00APR$4,13560$4,04515.5%Monthly PaymentBy tableBy formulaace

Given: Number of months = 60 Total monthly payment = $5,884 APR = 15.5%

Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Number of Purchase price of a used car monthly payments Down Total of monthly payments $5,884.00 Amount Total finance payment $90 financed charge $1,839.00 APR $4,135 60 $4,045 15.5% Monthly Payment By table By formula

Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Number of Purchase price of a used car monthly payments Down Total of monthly payments $5,884.00 Amount Total finance payment $90 financed charge $1,839.00 APR $4,135 60 $4,045 15.5% Monthly Payment By table By formula

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

See similar textbooks

Similar questions

Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
How do I work out this problem? Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Purchase priceof a used car Downpayment Number ofmonthly payments Amountfinanced Total of monthlypayments Total financecharge APR $4,015 $90 60 $3,925 $5,764.00 $1,839.00 15.5%
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Purchase priceof a used car Downpayment Number ofmonthly payments Amountfinanced Total of monthlypayments Total financecharge APR $4,195 $95 60 $ 4,100 $5,944.00 $1,844.00 15.5% Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) ****TABLE ATTACHED***** Monthly Payment By table: By formula:
In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $34,000 and the interest rate is 9.50%, the borrower “pays” 0.0950 × $34,000 = $3,230 immediately, thereby receiving net funds of $30,770 and repaying $34,000 in a year. A. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) B. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 19.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Purchase priceof a used car Downpayment Number ofmonthly payments Amountfinanced Total of monthlypayments Total financecharge APR $4,195 $95 60 $ 4,100 $5,944.00 $1,844.00 15.5% Monthly Payment By table By formula
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,950 48 $551.47 $ $ %
If you borrow $9,983 and are required to pay back the loan in five equal annual installments of $2,500, what is the interest rate associated with the loan? Use Appendix D or a financial calculator to solve this problem. (Round your answer to the nearest whole percent.
lender requires PMI that is 0.7% of the loan amount of $560,000. How much (in dollars) will this add to the borrower's monthly payment? (See Example 4 in this section. Enter a number. Round your answer to the nearest cent.)
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $8,800 36 11% $ $ $288.10
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.)