Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent compounded monthly and the loan is for 7 years. What are his monthly payments?

Q: Amna has a housing loan of $50,000 over 15 years with a 6% interest rate. According to the Bank he…

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

Q: Enrico Suarez has decided to purchase a house instead of renting an apartment. He can afford a…

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

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

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: Julie deposits $600 at the end of each month into her savings account. If the amount earns 5.25%…

A: In finance, the term annuity depicts a sequence of cash flows over a specific time duration. Each…

Q: Jon buys a car for $25,000. He pays $5000 down and pays the balance in 60 equal monthly payments. If…

A: Computation:

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: Dagmar has a 4-year car loan at an annual interest rate of 4.5%. She has made 28 payments of…

A: Pay-off amount: The amount which satisfies all the terms of the loan and completely write-off the…

Q: 1. Nelson wants to buy a car that costs $42,000. He has arranged to borrow the total purchase price…

A: Using the PMT function in excel

Q: Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12%…

A: given, bank loan = $35,000 installment = 5 interest = 12%

Q: A college student, needs to borrow $5,000 today for his tuition bill. He agrees to pay back the loan…

A: Time period is 5 years Borrowed amount is $5,000 Amount to be paid is $7012.76 To Find: Nominal…

Q: Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low…

A: Given Information, Payment made after 3 years =$18,000 Interest rate =0.0375/2=0.01875(As the period…

Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation as follows: Therefore, the payment amount and total interests are $286.18 per month and…

Q: ken just bought a house. He made a $20,000 down payment and financed the balance with a 25 year home…

A: Purchase price = Down Payment + Present Value of Mortgage Payment

Q: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…

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

Q: Joel is considering putting a $2400 laptop purchase on his credit card, which has an interest rate…

A: When something is purchased on credit, the amount can either be paid as a lump sum or in…

Q: Bob can afford car payments of $365 per month for 4 years. If the interest rate is 4.9 percent, how…

A: Amount he can afford to borrow is present value of monthly payments

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: It is now five years later, and Adrian has saved enough money for a 20 percent down payment on a…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: Robert recently borrowed $20,000 to purchase a new car. The car loan is fully amortized over 4…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th…

A: a) Value of chevy malibu = $12,500 Down payment =$1,000 Loan Amount =$12,500 -$1,000 Loan amount…

Q: Johnny and Lucy have purchased a home for $365,000. They will need to obtain a mortgage for 85% of…

A: Loan amortization table shows the bifurcation of each monthly payment in the interest payment and…

Q: Kristy Joe deposits $130 each month in an ordinary annuity to save for a new car. If the annuity…

A: The future value of the investment is computed to find total saving can be made for the new car.…

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: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…

A: It will be enough if the present value of monthly payment of $700 is equal to or more than the car…

Q: Ken wants a $1,000 TV/sound system. He can't afford that amount, so he uses a credit card with 20%…

A: It is an example of simple interest. An interest of 20%/12 is given every month on $1000 for a…

Q: How much should Timothy's dad invest into a savings account today, to be able to pay for Timothy's…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and…

A: Calculation of monthly payment: Answer: Monthly payment is $995.40

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Value of loan increase at mentioned rate for a loan duration. This FV can be computed by using…

Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…

A: The amount of interest paid is calculated as difference of total payments less present value of…

Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…

A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…

Q: Phil can afford $240 a month for five years for a car loan. If the interest rate is 8.5 percent, how…

A: Monthly payment (P) = $ 240 Interest rate = 8.5% Monthly interest rate (r) = 8.5%/12 =…

Q: Javier just bought a condominium in Collegetown, USA. His $100,000 mortgage is 6% compounded…

A: Property taxes are the taxes which are required to be paid by an individual for holding the…

Q: what is the highest price he can afford to pay for a car?

A: Monthly Payment: It is the payment made on the loan amount borrowed. The monthly payment comprises…

Q: Jonathan wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation:

Q: Todd is able to pay $360 a month for 6 years to finance a car purchase.  a. If the interest rate is…

A: Per month payment=$360Number of months=6×12=72Rate per month=6% compounded monthly

Q: Gerritt wants to buy a car that costs $31,250. The interest rate on his loan is 5.69 percent…

A: Information Provided: Car costs = $31,250 (Present value) Interest rate on loan = 5.69% compounded…

Q: Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed rate…

A: Computation:

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: Julia has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is…

A: Number of years is the period taken for the repayment of loan taken. Loan amount $150,000 Monthly…

Q: Anna and Doug are in the market for a new house. The maximum payment they can afford is $700 per…

A: The loan amount will depend upon the periodic payment, interest rate and the duration of the loan

Q: Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most…

A: The most expensive car that Dan might be able to afford shall be: = Amount received on trade-in +…

Q: Mike has a credit card balance of $30,000. The annual interest rate is 17%. He is required to pay a…

A: Credit Balance  $  30,000.00 Annual Interest Rate  17% Minimum Payment 4% or  $        50.00…