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Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number of 4.0% 4.5% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69. (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)

Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 5.0% Number of 4.0% 4.5% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69. (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $. (Round to the nearest cent as needed.)

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.19E
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Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Number Annual Percentage Rate of 4.0% 4.5% 5.0% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69 (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44 (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $ (Round to the nearest cent as needed.)
Transcribed Image Text:Nina buys a new sport utility vehicle for $32,000. She trades in her old truck and receives $11,000, which she uses as a down payment. She finances the balance at 4.5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Number Annual Percentage Rate of 4.0% 4.5% 5.0% 5.5% Payments (Finance charge per $100 of amount financed) 30 5.25 5.92 6.59 7.26 36 6.29 7.09 7.90 8.71 48 8.38 9.46 10.54 11.63 a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. Nina would pay $ 1488.90 in interest. (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were $ 624.69 (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ 1047.44 (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $ (Round to the nearest cent as needed.)
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