If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal installments at 1.59% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid? Your monthly payment is $ (Round to two decimal places.)

If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal installments at 1.59% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid? Your monthly payment is $ (Round to two decimal places.)

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 6FPE

See similar textbooks

Related questions

Q: If you buy a computer directly from the manufacturer for $2,546 and agree to repay it in 48 equal…

A: Here we will have to find the amount of monthly installments and the total interest paid. Note that…

Q: You are to make monthly deposits of $625 into a retirement account that pays an APR of 11.4 percent…

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

Q: An aunty deposits $10,000 into an account earning 2% p.a. pounded quarterly. She wants a total of 20…

A: An annuity depicts a stream of equivalent periodic cash flows for a specific duration. annuities can…

Q: A payday loan company charges a $95 fee for a $350 payday loan that will be repaid in 11 days.…

A: A payday loan is a short-term unsecured loan, often characterized by high-interest rates. The term…

Q: A flat screen TV has a purchase price of P 38,000. Mr. Cruz purchase it through monthly installment…

A: Formula PV = P+P*(1-(1+i)-(n-1))/i Where PV - Purchase price i.e. P 38000 P - Monthly payment i -…

Q: If you buy a stereo set for $600 and agree to pay for it in 18 equal installments at 1% interest per…

A: In the given question we need to compute the amount of monthly payments on a loan of $600

Q: How many payments will you have made when your account balance reaches $15,000?

A: Future Value of Annuity: It is the worth of the recurring cash flows or payments at a certain…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: borrow $9,100 over five years at 0.13 compounded monthly, what would be your monthly payment? Round…

A: Annuity - Annuity means the amount of series of payments based on fixed intervals periods. The…

Q: If you have a $19,500 car note with a $380.00 monthly payment, payable over 60 months, what interest…

A: In the above question we need to compute the interest rate from following details: Value of card…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: A couple who borrow $60,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…

A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: ur customers has just made a purchase in the amount of $28,000. You have agreed to payments of $590…

A: The time period to pay the loan will depends on the interest rate and compounding of loan and…

Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: You're prepared to make monthly payments of $220, beginning at the end of this month into an account…

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

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: An cellphone is for sale at either (a) P15,999 cash or, (b) on terms, P1,499 each month for 12…

A: According to the concept of Time Value of Money, the value of one unit of a currency is worth more…

Q: If you buy a computer directly from the manufacturer for $2,509 and agree to repay it in 60 equal…

A: This is the case of present value of annuity. Annuity is equal stream of cashflow at regular…

Q: If you buy a computer directly from the manufacturer for $2.634 and agree to repay it in 36 equal…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: A house that sells for P900,000 can be purchased under terms requiring 100 monthly payments. Assume…

A: Given that;Present value is P900,000Number of periods is 100

Q: A commercial bank will loan your client $99,544 for 5 years to buy a boat. The loan must be repaid…

A: Loan = 99,544 Time Period (N) = 5 years i.e. 60 months Monthly Compounding, number of compounding…

Q: You want to buy a new sports car from Muscle Motors for $79,000. The contract is in the form of a…

A: Price of a new sports car is $79,000 Time period is 48 months Interest rate is 7.3% To Find:…

Q: client at ZBX Fin Planning currently has $95,000 in their retirement account that is expected to…

A: Future value of money increases with increase in time and more deposit being made and more interest…

Q: If you take out an $7,900 car loan that calls for 60 monthly payments starting after 1 month at an…

A: Given information: Car loan amount $7,900 Number of periods is 60 monthly payments APR is 12%

Q: You’re prepared to make monthly payments of $265, beginning at the end of this month, into an…

A: Monthly payment (P) = $ 265 Future value (FV) = $ 68000 Annual interest rate =9% Monthly interest…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value of annuity due = P * [ (1+r)^n - 1 ] /r * (1+r) Where, r = rate per period i.e.…

Q: You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end…

A: Data given:: No. of deposits = 24 Amount deposited at the beginning of each month = $500 FV= $12800…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The amount which is deposited at the beginning of every period for a specified duration is known as…

Q: How many months will it take you to pay off a loan of $11,000 at 3% APR compounded monthly if you…

A: Loan = 11000 APR = 3% Monthly Compounding Interest Rate = APR / Number of compounding periods =…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Given, Wall unit Cost =$2300 Down payment =$600 Loan Installment = 48 months Payments = $43.5 per…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Financing an item provides a facility to the purchaser to make the payment of the item in small…

Q: If I plan to avail of a loan today and I will pay it P7,338 every start of the month for 6 years…

A: monthly rate (r) = (1 + 11.6%/4)1/3 - 1 = 0.9575% FV = 0 N = 6*12 PMT = 7,338 use PV function in…

Q: Fernando Jose would like to buy a cellphone payable for 6 months starting at the end of the month.…

A: Monthly payment (X) = P 3000 Interest rate = 9% semiannually compounded Let r = Monthly rate n = 6…

Q: You're prepared to make monthly payments of $260, beginning at the end of this month, into an…

A: The number of payments made can be calculated with the help of NPER function of Excel

Q: You can afford monthly deposits of $110 into an account that pays 4.5% compounded monthly. How long…

A: Given:

Q: You wish to save $51000 in an account which pays 4% compounded monthly by making semiannual deposits…

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

Q: If I plan to avail of a loan today and I will pay it P7,938 every end of the month for 6 years…

A: Equivalent annual rate = (1 + 11.09/4)4 - 1 = 11.56% Monthly rate (rate)= 1.1156^1/12 - 1 =…

Q: You’re prepared to make monthly payments of $190, beginning at the end of this month, into an…

A: I/Y = rate = 6%/12 = 0.5% PMT = payment = -190 PV =Present value = 0 FV = future value = 10000 CPT…

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: For calculation of purchase price we need to use the following formula of annuity due PV of annuity…

Q: A salboat costs $23,769. You pay 5% down and amortize the rest with equal monthly payments over a…

Q: If I plan to avail of a loan today and I will pay it P6,208 every end of the month for 6 years…

A: FV = 0 rate (monthly) = (1 + 11.29%/4)1/3 -1 = 0.9321% PMT = 6208 N = 6*12 use PV function in Excel

Q: An item is for sale for 7,800, Mr. Bing can pay 2,200 down payment and 240 every end of the month.…

A: First we need to calculate the amount that need to be after down payment. Amount left = Selling…

Q: You want to buy a new sports car from Muscle Motors for $87,000. The contract is in the form of a…

A: Here, To Find: Monthly payment =?

Q: If you buy a computer directly from the manufacturer for $2,825 and agree to repay it in 48 equal…

A: Principal = $ 2825 Number of monthly installments = 48 Monthly interest rate = 1.94%

Q: You're prepared to make monthly payments of $200, beginning at the end of this month, into an…

A: Monthly payment (M) = $200 r = 10% per annum = 0.833% per month Let n = Number of payments

Q: If you were to borrow $8,400 over five years at 0.14 compounded monthly, what would be your monthly…

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

Question

100%

Hello! I need the solution of the question attached. Thank you!

If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal installments at 1.59% interest per month on the unpaid balance, how
much are your monthly payments? How much total interest will be paid?
Your monthly payment is $
(Round to two decimal places.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 There are 2 questions

VIEW

Step 2 Solution to question 1

VIEW

Step 3 Solution to 2nd question

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.