Determining the amount of interest and the monthly payment:Purchase cost of the car, P = $57,885Add-on rate, r= 0.9% or 0.009Time, t= 6 yearsCalculating the amount of interest by using installment loan formula:I = PrtI =(S57,885)(0.009)(6 years)%3DI = $3125.79Therefore the amount of interest paid is $3125.79

Answered: Image /qna-images/answer/56a4f75e-0d28-4711-9bb2-35e75b1353a6.jpg

Answered: Determining the amount of interest and…

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter8: Sequences And Series

Section8.4: Mathematics Of Finance

Problem 19E

See similar textbooks

Similar questions

You just purchased a secondhand BMW. The car cost RM136,000. The bank quotes an interest rate of 10% APR for a 72-month loan with a 10% down payment. You plan on trading the vehicle for a new one in two years. What will your monthly payment be? What is the effective interest rate on the loan? What will be the loan balance be when you trade the car in?
Use PMT=P(r/)n) / 1−(1+r/n)^−nt to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of $3600 and an annual interest rate of 14%. You decide to pay off the balance over five years. If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay?
Struggling to find the monthly payment, and the total of interest.. says round to nearest cent please help
You open a checking account. You are paid 5% interest on the average daily balance, but are charged a $10 monthly charge. Assuming that interest is paid monthly (regardless of the number of days in the month), calculate the average balance you must maintain to offset the $10 monthly charge
You plan to purchase a home mortgage for a home that cost 1431549 with a 3% interest rate for 29 years . How much is monthly payment for the mortgage with the interest. Round your answer to 2 decimal places.
The monthly interest rate on this loan is 0.5%. The amount of the first month’s payment($1918.56) that goes to pay off interest on the loan is 0.5% of the loan amount ($320,000).Calculate this interest payment. Then calculate the amount of the first month’s payment that goestoward paying off the loan balance (principal).
Use PMT=Prn1−1+rn−nt to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $75,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 8% or 30-year fixed at 8%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option?
2020 Honda Civic, Price is $22,000. Loan is 6 years at 3% interest monthly. Calculate the monthly payment d,using the loans formula.
Silvia has just obtained a 30 year home mortgage in the amount of $299,000 at an APR of 4.5%. a. Find her required monthly payment she should pay b. Determine the total amount she will pay over the term of the loan c. Of the total amount what percentage is for the principal and what percentage is for the Interest?
Anna is buying a house selling for 215,000. To obtain the mortgage, Anna is required to make a 15% down payment. Anna obtains a 25-year mortgage with an interest rate of 6%. a) Determine the amount of the required down payment. b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest.
When Cecilia’s car needs a new transmission, she’s stuck with a bill for $1550 . The dealership offers her an 18 -month loan at 14.8% interest to be repaid in 18 equal installments. Find the monthly payment. Round your intermediate steps to the nearest cent. The monthly payment is $ .
A major airline is planning to purchase new airplanes. It wants to borrow $800 million by issuing bonds. The bonds are for a 10 year period with simple interest computed quarterly at the rate of 2% per quarter. Interest is to be paid each quarter to the bond holders. How much will the airline have to pay in quarterly interest? How much interest will it pay over a 10 year period?

SEE MORE QUESTIONS

Recommended textbooks for you

College Algebra

Algebra

ISBN:

9781305115545

Author:

James Stewart, Lothar Redlin, Saleem Watson

Publisher:

Cengage Learning

Holt Mcdougal Larson Pre-algebra: Student Edition…

Algebra

ISBN:

9780547587776

Author:

HOLT MCDOUGAL

Publisher:

HOLT MCDOUGAL

Algebra & Trigonometry with Analytic Geometry

Algebra

ISBN:

9781133382119

Author:

Swokowski

Publisher:

Cengage

College Algebra

Algebra

ISBN:

9781305115545

Author:

James Stewart, Lothar Redlin, Saleem Watson

Publisher:

Cengage Learning

Holt Mcdougal Larson Pre-algebra: Student Edition…

Algebra

ISBN:

9780547587776

Author:

HOLT MCDOUGAL

Publisher:

HOLT MCDOUGAL

Algebra & Trigonometry with Analytic Geometry

Algebra

ISBN:

9781133382119

Author:

Swokowski

Publisher:

Cengage

SEE MORE TEXTBOOKS