Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down paymen

Q: Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a…

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

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: A computer with software costs $2,941, and Catherine Stevens has agreed to pay a 17% per year…

A: Given,   Cash price of computer = $ 2,941 Rate per 18 months = 0.17/12 * 18 = 25.5%

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: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

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

Q: Susan had an auto loan left of $11,000 with a 14.6% interest rate. Her payment is $400 a month, $200…

A: The monthly interest rate  on the outstanding loan : The monthly interest rate  on the outstanding…

Q: A beginner in business bought a machine to make canned goods for 45,000 dollars. His old machine is…

A: Original Price of machine = 45,000 Old Machine Selling Price = 10,000 Discount = 7% Purchase Price…

Q: Rebecca saved $1000 from her summer job and bought a CSB earning 3.75%, compounded monthly. She…

A: Amount saved = $1000 Interest rate of CSB = 3.75% per annum = 0.3125% per month Total amount…

Q: Dreya and Fred bought a $225,000 house. They made a 10% down payment and financed the rest at an APR…

A: APR: The Annual Percentage Rate (APR) is the total cost of a loan to a borrower, including fees. The…

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: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…

A: Using excel PV function

Q: If Sandy can afford car payments of $450 per month for 6 years, what is the price of a car that she…

A: Using excel PV function

Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

A: Amount to borrow is $6,000 Dealer -1 Monthly Payment are $193.60 Loan tenure is 3 years APR of 10%…

Q: If Sandy can afford car payments of $430per month for 3 ​years, what is the price of a car that she…

A: The maximum value of car that can be afforded is the present value of monthly payments. This can be…

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: To buy some furniture, Asmaa can put $150 down and "don't pay a cent" for 6 months. At the end of 6…

A: Price of furniture is sum of amount financed and the down payment. Amount financed is calculated by…

Q: Ali is willing to pay $210 a month for 5 years for a car payment. If the interest rate is 5%,…

A: A loan is a type of credit that is given to an individual by the financial institution and on the…

Q: Rosie is buying a car for $25,500; She is Scheduled to make 7 annual instalments. Given an interest…

A: Given that, Cost of car = $25,500 Number of instalments = 7 Interest rate = 8%

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: You have a client who wants to buy a house. He needs $40,000 for a down payment and has $30,000…

A: Here we have to invest $ 30000 at the 5% annual rate but compounded quarterly. and want $ 40000 in…

Q: f Brian wants to buy a house that cost $100000 the bank agreed to give him 80% of cost at 0.07…

A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…

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: Natasha is going to take out an unsubsidized student loan of $13,500 at a 4.2% APR, compounded…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Q: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

Q: arl’s house payment is $1,270 per month and his car payment is $465 per month. If Carl's take-home…

A: Given Information : Carl's house payment per month = $1,270 Carl's car payment = $465 Carl's…

Q: You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives…

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

Q: A person needs ​$17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: You are buying a car. You pay $15,000 today and $200 a month for three years. If the annual rate of…

A: Given, Amount paid for the car $15,000. Annual rate is 8%. monthly payment is $200. Term is 3 years.…

Q: If Samatha finances the entire cost of a $700 bike at an APR of 2.95%, how much will she end up…

A: Loan is the the debt taken by the person or the firm. formula of monthly payment: monthly…

Q: If Sam can afford payments at $390 per month for 6years. what is the price of a car that she can…

A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

Q: Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in Selkirk, MB…

A: Maximum bi-weekly payment "PMT" = $325 Number of years = 25 Number of periods "NPER"= 5*52/2 = 130…

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Add-on interest loans combine the principal and interest into one amount that is owed and later paid…

Q: Kristi Perez puts $10,500 into an account to save money to buy a car in 12 years. She expects the…

A: We require to calculate the interest rate from following details given in the question: Current…

Q: Beth's living expenses for the next 4 weeks total $1600. If Beth earns the same commission plus…

A: Sales commission: Sales commission refers to the additional compensation which employee receives for…

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: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: To purchase a car, Sarah took out a 60-month loan for $33,000 with a 7.6% annual interest rate.…

A: If a loan is repaid with regular equal payments, each payment consist principal part and interest…

Q: Mary Smith took a car loan of $20,000 to make 60 equal monthly payments. The interest compounds…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

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: Lori earns $3,898 per month. She has a monthly rent payment of $980 along with average credit card…

A: Car payment refers to the amount which is paid to financial institution or car dealer that has…

Q: A recent college graduate buys a new car by borrowing $22,000 at 6%, compounded monthly, for 4…

A: since you have posted a question with multiple sub-questions, we will solve the first three…

Q: if i work for $8.75 an hour for 10 hours a week and the new cars cost is $436, how many weeks…

A: Total weekly earnings= Hourly rate * total week hours = $ 8.75*10 = $ 87.50

Q: Sam can afford to spend $500 per month on a car. He figures he needs half of it for gas, parking,…

A: Maximum affordable monthly amount = $500 Monthly amount for instalment = $250 ($500 / 2) Rate of…

Q: a is buying a car for $12,560.00. Her down-payment is $3000.00 followed by 24 monthly payments of…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

A: Given two loan options. We have to find the total payments made for both options and select the one…

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.