Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to pay off the loan. What is the loan's annual rate of interest?

Q: Sam took a $5000 loan to build a deck in the backyard. The loan requires payments at the end of each…

A: Converting rate of interest from 9% compounded monthly to quarterly   Effective rate of interest =…

Q: For her son's tuition fee, Maria borrowed 10,000 pesos from a lending company with annual simple…

A: Borrowed Amount (P)=10,000 pesos Duration (n)= 2 years Rate of simple interest (r)=0.084 p.a.…

Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Lillian took out a 20-year loan for $170,000 at 8.8% interest, compounded monthly. If her monthly…

A: A loan is a financial arrangement in which one person borrows funds from another person at a…

Q: Lupe made a down payment of $8000 towards the purchase of a new car. To pay the balance of the…

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

Q: Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is to be amortized…

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

Q: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

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: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

Q: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

A:

Q: Stephanie purchased an annuity that will provide her with payments of $1,500 every month for 4…

A: monthly rate of interest = (1 + 4.25%/2)1/6 - 1 = 0.3511%

Q: Jenna owns a jewelry business, and she plans to save $500 every month for 3 years to buy precious…

A: Using Excel

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Given: Cost of house = $930,000 Down payment = 30% Interest rate = 2.19% Years = 20

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: While buying a new car, Julia made a down payment of $800.00 and agreed to make month-end payments…

A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…

Q: Your grandmother set up an annuity, in which she will receive a monthly payment from the bank of…

A: The present value of an annuity is the present value of a series of cash flows at a certain rate of…

Q: Shantel purchased a car for $22,000; she paid $2200 as a down payment and financed the balance…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Lupé made a down payment of $5000 toward the purchase of a new car. To pay the balance of the…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Reggie availed of a deferred payment scheme from a bank that gave her an option to pay ₱5,500…

A: solution given Monthly payment 5500 Rate of interest 12% annual Compounding…

Q: Liz borrowed $52,500 to purchase a home. The bank offered her an APR of 3.49% for a term length of…

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

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: Raia purchases a new car for $32,000 and finances it with a 6-year simple interest loan at a rate of…

A: Formula Monthly payment  = PV/[1-(1+R)-N]/R Where PV - Loan amount i.e. $32,000 R - Monthly interest…

Q: Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the…

A: Purchase price of the furniture is present value of monthly payments plus down payments

Q: Helen is buying a $12,375 car with a $3000 down payment, followed by 36 monthly payments of $325…

A: Given data; Price of car = $ 12,375 down payment = $ 3000 number of payments = 36 monthly payment =…

Q: Sally buys a house. She has limited initial funds, so she agrees to make 360 monthly payments as…

A: Nominal interest rate: It is the rate in which the effect of inflation has not been considered.

Q: Nona purchased a new car earlier today for $32,000. She financed the entire amount using a five-year…

A: GIVEN, R = 3% LOAN AMOUNT = $32000 N= 5 YEARS = 60 MONTHS PMT = P×R12×1+R12N1+R12N-1PMT =…

Q: Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed…

A: Using excel PMT function

Q: Mariah applied for a loan in a bank that gave 10, 000 pesos monthly payment for 2 years. The first…

A: The present value of an annuity is the current value of the future payments that are calculated…

Q: Mary, a college student, needs to borrow $8,000 today for her tuition. She agrees to pay back the…

A: This question is about calculating the future value. Formula: Future value = Initial amount*(1+…

Q: Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the…

A: Cost of piano is $132,000 Down payment is 25% Equal Monthly Payment is $1,650 Interest rate…

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…

Q: After four years in college, Josie owes $104000 in student loans. The interest rate on the federal…

A: Let the amount in federal loans be "$X" , therefore amount in private bank loans would be…

Q: Angelica took out a 20-year loan for $170,000 at 5.4% interest, compounded monthly. What is her…

A: The monthly payment is determined by dividing the loan amount from the present value factor. The…

Q: Joshua borrows 35,000 pesos from a cooperative to buy a laptop. He will repay the loan in equal…

A: Borrowing refers to the act of taking money from another party with known intention to repay that…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance…

A: Value of House is $230,000 Down Payment is $11,500 Therefore, Loan Amount is : =$230,000-$11,500…

Q: Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: Mr. Nailor invests $19,000 in a money market account at his local bank. He receives annual interest…

A: In this question we need to calculate the holding period return for Mr. Nailor. First we need to…

Q: Sarah secured a bank loan of $200000 for the purchase of a house. The mortgage is to be amortized…

A: Excel Spreadsheet: Excel Workings:

Q: Sarah secured a bank loan of $200,000 for the purpose of purchasing a home. The mortgage is to be…

A: Calculation for remaining balance for repaying loan after 5 years is shown below: Hence, the…

Q: Maria Shriver has a $27,600 debt that she wishes to repay in 4 years from today; she has $18,181…

A: This question  require us to calculate the rate of interest so that $18181 will be converted into…

Q: Garrett and Erin are borrowing $170,000 to purchase a new home. They have been approved for a…

A: Using the PMT function in excel

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

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

Q: Rebecca Carlson purchases a car for $25,000 and finances her purchase by borrowing the money at 8%…

A: Equated Monthly Installments is one part of the equally divided monthly outgoes to clear off an…

Q: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…

A: Price of house = $ 360,000 Dow payment =10% Loan amount (PV) = 360,000*(1-0.10)…

Q: Eleven months after borrowing money, Dorah pays an interest of ₱2,800. How much did she borrow if…

A: In order to find the principal amount one has to find the yearly interest rate and then principal.

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.…