Liz buys a new car for $18,600. She puts 15% down and obtains a simple interest amortized loan for the balance at 6. 25% for 5 years. Find her monthly payment and the total interest paid.

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $20,000 in student…

A: To know period we have to calculating present value FACTOR annuity and depending on value and…

Q: George buys a car every 6 years for ₱18,000. He trades in his current car to count as the 20%…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…

Q: Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and…

A: Equated monthly installment or EMI is referred to as the amount that are paid in monthly basis…

Q: Tina decided to buy her first home. She found a house for $153,650. She will need to finance…

A: Time value tells that money received today is of more value than that of receiving the exact value…

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. lane borrows $30,000 for 10 years. She wishes to pay it off with five payments. The first payment…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: Bobby Sue’s landlady has agreed to sell her the house she is renting for $260,000 in 4 years. Her…

A: Future Value of Annuity = PMT [((1 + r)n - 1) / r] r = periodic rate n = number of periods PMT =…

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: Gwen decides to make regular deposits every month into an account that earns 8% annual interest,…

A: The question is based on concept of present value and future value of money .  formula as: FV=pmt…

Q: To pay for a  $22,300  truck, Jina made a down payment of  $4900  and took out a loan for the rest.…

A: As per the information provided : Jina to pay $22,300 for a truck. She made a down payment of $4,900…

Q: Carol wants to have $500,000 when she retired in 25 years.  Her credit union has an ordinary annuity…

A: GIVEN, FV = $500,000 N=25 M=12 R=4%

Q: Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she…

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

Q: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid…

A: Given: Years = 30 Fixed interest rate = 5% Cost = $450,000 Down payment = 20%

Q: Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months…

A: Line of credit is a type of bank account which allows business to borrow a certain amount of money…

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: sky wants to purchase a new house that cost 1,440,000. The bank agrees to provide a loan to fixed…

A: We need to find monthly installment and compare that with the salary of 20000 per month. If monthly…

Q: Joan Hart borrowed $9,800 to travel to France to see her son Dick. Joan’s loan was to be paid in 50…

A: A loan rebate signifies the amount saved by paying a loan early. The amount is generally saved from…

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: Katie bought a house in 2000 for $300,000. She put 10% down and then financed the remaining balance…

A: EMI = P×r×(1+r)n(1+r)n-1 where; P = Principal = $300,000*90%= $270,000 r = rate of interest = 7.25…

Q: simple interest amortized loan for the rest at 6 3/8 % interest for thirty years.

A: Amortized Loans: Amortized loans are loans in which the interests as well as the principle amount…

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: Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer…

A: A deferred annuity is the annuity plan under which payment is accumulated for a certain period and…

Q: Shirley Trembley buys a house for $186,200. She puts 20% down and obtains a simple interest…

A: An amortized loan is one in which the borrower is required to make regular, scheduled payments that…

Q: In 6 years Harry and Sally would like to have $24000 for a down payment on a house. How much should…

A: In this question we need to compute the each month deposit to have $24000 for down payment in 6…

Q: Bill Baxter has $25,000 to invest for a year.  He can lend it to his sister, who has agreed to pay…

A: given, simple interest to sister P = $25,000 r= 10% n = 1 retirement plan: P= $25000 r=6% m=4 n=1

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: her new house. She can repay the loan in either of the two ways described below. (a) Five equal…

A: Inputs Borrowing Amount or Loan Amount = 5000

Q: Cate bought a new car for $25,000. The bank granted her a loan with a simple interest rate of 7%…

A: Using simple interest method, the interest is paid equal during every period.

Q: When Mary had 4 years left in college, she took out a student loan for $15,110. The loan has an…

A: Loan Amount = 15,110 Time Period in college = T = 4 years Time Period for loan repayment = N = 36…

Q: Tom Burke bought a home in Virginia for $160,000.  He puts down 25% and obtains a mortgage for 30…

A: Home cost = $160,000 Down payment = 25%*$160,000 = $40,000 Mortgage period = 30 years  Interest rate…

Q: Aretha ran up $38,800 on her credit card, which charges 13.95%. If she decides to cut up her card…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: Pat bought a home for $165,000 and made a $25,000 down payment. She got a fixed rate mortgage at 5%…

A: Computation:

Q: Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000,…

A: Installment is the sum of payments made by the borrower periodically in order to pay back the loan…

Q: Lashonda wants to buy a new house but needs money for the down payment. Her parents agree to lend…

A: Simple Interest Can be computed as below. Simple Interest = Principle X Rate of Interest X Time

Q: If Cheryl has four years until she gets her driver’s license, will she have enough to buy a used car…

A: Future value: It is the value of the sum of money in the future, compounded at a specific interest…

Q: Ria buys a two-year-old Honda from a car dealer for P450,000. She puts P150,000 down and finances…

A: Equated monthly installments(EMI) is the equally divided monthly installments that outgoes to clear…

Q: Marsha Terban bought a home for $110,000 with a down payment of $10,000. Her rate of interest is 9…

A: Given, Home loan cost = $110,000 Down payment = $10,000 Rate of interest  = 9 1/2 % Number of years…

Q: Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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.…

Q: mary, a college student, needs to borrow $8000 today for her tuition. She agrees to pay back the…

A: Loan is referred as the amount of fund is given to a party in exchange of repayment of principal…

Q: Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to…

A: Compound interest is also interest on interest that is the interest which is accumulated on the…

Q: Alex wants to purchase a used car for OR 20,000.00. She could pay OR 5000.00 at purchase and wishes…

A: The computation of yearly payment as follows:

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.