Mike wants to buy a scooter that costs 10000, but he cannot afford to buy it cash. He opts for the hire purchase agreement, which requires a 13% deposit and 24 equal monthly instalments at an interest rate of 15% per annum, compounded monthly. How much will his deposit be? Calculate the total amount that he still must pay after the deposit. Calculate the monthly instalments

Q: An employee is earning P 18,000 a month and he can only afford to purchase a car which will require…

A: Maximum amount of EMI that the employee can afford is 30% of his earnings i.e. 30% x P18,000 =…

Q: Matt is saving to buy a new motorcyce. If he deposits $60 at the end of each month in an account…

A: The amount at the end of 15 months can be calculated with the help of future value of annuity…

Q: Luis has $160,000 in his retirement account at his present company. Because he is assuming a…

A: Given: Amount in retirement account = $160,000 Annual payment = $2,000 Years =22 Interest rate = 8%

Q: Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside…

A: The is based on the calculation of mortgage loan and value of property as per eligibility of loan .…

Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…

A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…

Q: Kiki bought a computer for Rp. 8,000,000, -. If he bought it With credit, he must prepare advance…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

Q: - Simionie needs $7000 to buy a snowmobile, but only has $6000. His bank offers a GIC that pays an…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Rosa Burnett needs $4,000 in three years to make the down payment on a new car. How much must she…

A: Future value required for car = $4,000 Interest Rate = 2.5% Time period = 3 years

Q: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save…

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

Q: Max wants to save $500,000 to give to the local clown college (possibly Duke or NCSU). Max decides…

A: In the given question we require to compute how many full deposits will Max need to make to have…

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: in decided to buy his dream car worth 1,125,000 pesos. The seller requires a 20% down payment while…

A: The question is based on the concept of Financial Management.

Q: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…

A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…

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: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…

A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…

Q: Joel is considering putting a $2200 laptop purchase on his credit card, which has an interest rate…

A: Monthly payment includes interest payment and portion of principal payment to be paid back. Interest…

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

Q: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…

A: Loan amount (P) = $589,000 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period of…

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: Rachael also wishes to save for retirement. She can comfortably afford to invest R8 500 at the end…

A: Firstly calculate future value of annuity = P*[((1+r)^n)-1]/r Where P =Periodic payment i.e. 8500 r…

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: Ricardo wants to buy a large fishing boat so that he can go deep-sea fishing. He needs $100,000 and…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

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: Engr. De Ocampo is planning to buy a condominium. If he is to pay 100k per month with a down payment…

A: Condominium price = 20,000,000 Down Payment = 2,000,000 Payment Per month = 100,000 Interest Rate =…

Q: Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13%…

A: Solution:-  When a loan is taken, it can either be repaid as a lump sum payment or in instalments.…

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: Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year, Interest Only…

A: Loans are to be paid by the monthly payment that carry the payment of interest and payment for…

Q: For a 2-year projeet, Haya plans to open a small hand-made crafts shop. She estimates that it will…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…

A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…

Q: Aaron is planning to get a loan for a house costing $320,000. He plans to make a downpayment of 15%…

A: A mortgage is a loan provided by the bank to the individual to buy the house. An individual can…

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: Fernando has the choice of taking out a 25-year loan for $150,000 at 6.6% interest, compounded…

A: Annuity payments refer to the set of fixed periodic payments that an investor or a depositor makes…

Q: If you need to take out a S50,000 student loan 2 years before graduating, which loan option will…

A: Here, Amount of Loan is $50,000 The loan has been taken before 2 years from graduation and has…

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: Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal…

A: Calculation of number of months:Excel spreadsheet for calculation of number of months

Q: a.) Find Jin’s monthly payment. b.) If after 10 years, he decided to pay off the loan, calculate…

A: a.) PMT = P x r / [1 – {1 / (1 + r)^n}] Here, PMT = Periodic Payment P = Present Value or Amount…

Q: Chris Svenson is trying to decide whether to lease or purchase a new car costing $18,000. If he…

A: Using the analysis form as below, cost of leasing and purchase has been derived.

Q: Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000…

A: The future value function can be used to determine the future value of a present sum of cash flow,…

Q: Marie and Danny Would like to buy a house for $220,000. The down payment for the mortgage is 30% of…

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

Q: An employee is earning P12,000 a month and he can only afford to purchase a car which will require a…

A: Down payment (D) = P 10000 Monthly payment (M) = 30% of P 12000 = P 3600 r = 18% per annum = 1.5%…

Q: A woman, with her employer's matching program, contributes $300 at the end of each month to her…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…

A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…

Q: An employee is earning P 18,511 a month and he can only afford to purchase a car which will require…

A: salary =18511 monthly payment =0.3×18511=5553.3 monthly payment =5553.3 Period =4 years =48 months…

Q: Moon purchases a lot for $300,000. Moon agrees to pay $25,000 dollars at the end of each year. If…

A: Time has been precious in all perspectives, however in terms of finance, time has a monetary value.…

Q: To rent an apartment, Nick has to pay the first month of rent plus the last month of rent and a…

A: Under the cash advancement on the credit card system, the borrower is able to borrow money and has…