Eric is taking out an amortized loan for $17,000 to buy a new car and is deciding between the offers from two lenders. He wants to know which one would be the better deal over the life of the car loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) His credit union has offered him a 7-year car loan at an annual interest rate of 6.7%. Find the monthly payment. (b) A bank has offered him a 5-year car loan at an annual interest rate of 6.7%. Find the monthly payment. (c) Suppose Eric pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Credit union The total amount paid would be $ less than to the bank. O Bank The total amount paid would be S less than to the credit union.
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- Ahmad is taking out an amortized loan for $25,000 to buy a new car and is deciding between the offers from two lenders.He wants to know which one would be the better deal over the life of the car loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas . (a) A savings and loan association has offered him a 5 -year car loan at an annual interest rate of 9.3% . Find the monthly payment. $ (b) An online lending company has offered him a 5 -year car loan at an annual interest rate of 8.9% . Find the monthly payment. $ (c) Suppose Ahmad pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Savings and loan association The total amount paid would be$less than to the online lending company. Online lending company…Lashonda is taking out an amortized loan for $29,000 to buy a new car and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the car loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas . (a) Her credit union has offered her a 7 -year car loan at an annual interest rate of 6.4% . Find the monthly payment. $ (b) A bank has offered her a 5 -year car loan at an annual interest rate of 6.4% . Find the monthly payment. $ (c) Suppose Lashonda pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Credit union The total amount paid would be$less than to the bank. Bank The total amount paid would be$less than to the credit union.Christine is taking out an amortized loan for $22,000 to buy a new car and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the car loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas . (a) An online lending company has offered her a 5 -year car loan at an annual interest rate of 10.3% . Find the monthly payment. $ (b) Her credit union has offered her a 6 -year car loan at an annual interest rate of 8.5% . Find the monthly payment. $ (c) Suppose Christine pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Online lending company The total amount paid would be$less than to the credit union. Credit union The total amount paid…
- After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing through the dealer is no bargain. He has $2,100 cash for a down payment, so he needs an $8,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,400 for a period of two years at an add-on interest rate of 10 percent. a) What is the total interest on Richard’s loan? b) What is the total cost of the car? c) What is the monthly payment? d) What is the annual percentage rate (APR)?After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $12,900 price, but financing through the dealer is no bargain. He has $2,500 cash for a down payment, so he needs an $10,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,400 for a period of four years at an add-on interest rate of 10 percent. What is the total interest on Richard’s loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the total cost of the car? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the monthly payment? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.…Ivanna is taking out a mortgage for $165,000 to buy a new house and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the mortgage loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A savings and loan association has offered her a 30 -year mortgage loan at an annual interest rate of 4.6% . Find the monthly payment. $ (b) An online lending company has offered her a 15 -year mortgage loan at an annual interest rate of 4.4% . Find the monthly payment. $ (c) Suppose Ivanna pays the monthly payment each month for the full term. Which lender's mortgage loan would have the lowest total amount to pay off, and by how much? Savings and loan association The total amount paid would be$less than to the online lending company. Online…
- Nicole is taking out an amortized loan for $33,000 to buy a new car and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the car loan, and by how much. (a) A bank has offered her a 5-year car loan at an annual interest rate of 6.5%. Find the monthly payment. (b) Her credit union has offered her a 7-year car loan at an annual interest rate of 6.5%. Find the monthly payment. (c) Suppose Nicole pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? • Bank The total amount paid would be $ ____ less than to the credit union. • Credit union The total amount paid would be $ ____ less than to the bank.Brian is planning to purchase a car. The list price of the car is $42000. If Brian pays cash for the car, the dealer will reduce the price by 10%. Otherwise, the dealer will provide financing the terms of which require Brian to pay $9480 at the end of each of the next five years. The effective interest rate to the nearest percent for the financing arrangement for the five annual payments, assuming that the amount financed equals the cash price of the car isA friend of yours just bought a new sports car with a $5,000 down payment,and her $30,000 car loan is financed at an interest rate of 0.75% per month for 48 months. After two years, the “Blue Book” value of her vehicle in the used-car marketplace is $15,000. Solve, a. How much does your friend still owe on the car loan immediately after she makes her 24th payment? b. Compare your answer to Part (a) to $15,000. This situation is called being “upside down.” What can she do about it? Discuss your idea(s) with your instructor.
- Sebastian checks Daniel’s credit rating and determines that he will qualify for a 4% auto loan, and they agree that his trade-in is worth $8,500. The cost of the car is $39,900. If he is planning to finance the loan for 4 years, how much does he have to pay every month?Answer:pay $708.98 every month Question:Repeat the above question, if he is planning to finance the loan for 3 years.Junior has bought a four-wheel-drive Suzuki Vitara SUV for his confectionery business. The price of the vehicle was $6,500,000, of which he made $2,500,000 down payment and took out an amortized loan for the balance. His local bank made the loan at 12% interest for five years. He is to pay by the principal and interest in five equal annual installments beginning one year from now. Determine the amount of junior annual payments. Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and he uses the discount method. If borrows $40,000 at 9% for 48 months, how much is his monthly payment?