Suppose you purchase an automobile for a selling price of $1,600,000.  You make a down payment of 5% of the selling price and finance the remaining balance for 4 years at an annual interest rate of 5%.  The sales tax is 7.5% of the selling price, and the license fee is 0.8% of the selling price.  Find the monthly payment.

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan pay-off: It means paying the remaining loan balance in just one payment.

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Answer: Calculation of the future value: Step 1: Calculation of the future value of 5900 pesos:…

Q: Suppose you have selected a new car to purchase for $19,500. If the car can be financed over a…

A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.

Q: A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance…

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

Q: e net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years.How much was…

A: Amortization is the allocation of the cost of an intangible asset over its life. The maximum life of…

Q: The annual income from an apartment house is $33,600. The annual expense is estimated to be $8000.…

A: Return on investment = 6% = 0.06 Initial investment = $349,000 Annual net income = Annual income -…

Q: Please include calculations: A $100,000 loan can be obtained at a 10 percent rate with monthly…

A: Given:Loan amount=$100000Rate of interest=10%Time period=15 year term

Q: A car was bought on an installment basis with a monthly installment of P30,000 for 60 months. If the…

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

Q: The annual income from a rented house is $35,000. The annual expenses are $5,000. If the house can…

A: Annual Income = $35,000 Annual Expenses=$5,000 Net Cashflow =$35,000 -$5,000 =$45,000 Ending…

Q: Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000…

A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%

Q: A house and lot is to be purchased by paying 35,000 pesos monthly for 25 years. The first payment is…

A: The question is related to Cash price of the house and lot if interest rate is 12% converted…

Q: Suppose you purchase a car for a total price of $25,445, including taxes and license fee, and…

A: Given:

Q: Today you purchase a previously owned Tesla Model 3 for $40,000. You make a down payment of $5,000…

A: Given The purchase price is $40,000 Down payment $5,000 Rate is 0.25% per month payable in 60…

Q: An individual is purchasing a $15,000 automobile, which is to be paid for in 48 monthly installments…

A:

Q: A car is to be purchased in monthly payments of 15,000 for 5 years starting at the end of 3…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: The purchase of a car requires a $15,000 loan to be repaid in monthly installments for four years at…

A: Computation:

Q: You are considering a thirty-year home loan of $400,000. A prospective lender has quoted an APR of…

A: a. MONTHLY PAYMENT FORMULA: PMT = P×rn1-1+rn-mn=$400,000×3.75%121-1+3.75%12-30×12=$1852.46 answer:…

Q: A car was bought on an installment basis with a monthly installment of 30,000 for 60 months. If the…

A: Monthly payment (P) = $ 30,000 Number of monthly payments (N) = 60 Annual interest rate = 12%…

Q: You are purchasing a $18,000 used automobile, which is to be paid for in 36 monthly installments of…

A: Given:

Q: A student is buying a new car. The car’s price is $37,500, the sales tax is 6%, and the title,…

A: Formula to calculate the monthly payments is: A = P[i(1+i)^n]]       (1+i)^n - 1 =P(A/P,i,n)

Q: A car can be purchased with monthly installments of 8,500 and a down-payment of 115,000 for 48…

A: Monthly installment (M) = 8500 Down payment (D) = 115000 n = 48 months r = 12% per annum = 1% per…

Q: Suppose you purchase a car for a total price of $22,565 including taxes and license fee, and finance…

A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…

Q: Compute the specified quantity. You are expecting a tax refund of $2,000 in 5 weeks. A tax preparer…

A: Simple interest is based on the principal amount of a loan or the initial deposit in a savings…

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: You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted…

A: APR refers to annual percentage rate. An APR is the annual rate that is charged for borrowing or can…

Q: Suppose you purchase an automobile for a selling price of $32,000. You make a down payment of 5% of…

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

Q: What is the purchase price on a car that has a $350 monthly payment for 5 years, financed at 6% per…

A: Given: Monthly payment = $350 Years = 5 Interest rate = 6%

Q: What is the effective annual rate of interest on the additional 10% of house value borrowed on the…

A: Effective Annual Rate of Interest: It refers to the effective rate of the annual stated rate and…

Q: Suppose that you decide to buy a car for $28,635, including taxes taxes and license fees. You saved…

A: Car cost=28635 Saved =7000 period (4*12) = 48 interest (6.87%/12) = 0.57%                 G H…

Q: Stereo Inc. sells a stereo system for $400 down and monthly payments of $80 for the next 5 years. If…

A: The cost of an asset purchased on loan is calculated as the present value of the periodic payment.…

Q: You are making car payments of $315/month for the next 3 years, you know that your car loan has an…

A: Given details are : Monthly payment = $315 Time period = 3 Years Interest rate = 12.4% discounted…

Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…

A: The present value of annuity refers to the current value of regular payments made at fixed intervals…

Q: A car costing ₱1.2M is to be paid off by monthly payments over five years at a 10% annual interest…

A: Car cost = P 1,200,000 Sale tax = 6% Total cost(P) = 1,200,000*(1+0.06)                  =…

Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…

A: Loans are the liability of the borrower which is used to finance the requirement of the funds. The…

Q: Suppose you buy an appliance costing ​$2350 at a store charging 13​% ​add-on interest, you make a…

A: Computation of principal amount:

Q: You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the…

A: Time value concept Receiving the value today is of more value than that of receiving the same amount…

Q: Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you…

A: We use PMT function to calculate annual payments

Q: The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the…

A: Price of car=$20,000 Down payment=25%=$5,000 Amount financed=$15,000 Interest rate=4.2% p.a.…

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Present value can be found by the interest rate and given period by calculating the present value.

Q: A $100,000 loan can be obtained at a 10 percent rate with monthly payments over a 15-year term.a.…

A: The question is based on the concept of mortgage loan and tax treatment on the portion of interest…

Q: How much is the cash value of the car if the interest rate used is 10% converted monthly?

A: P = PMT x [1 – {(1 / 1 + r)^n} / r] Here, P = Present Value of Payments at the end of year 2 PMT =…

Q: Suppose that you decide to purchase a new car. You go to a credit union to get preapproval for your…

A: According to the time value of money concept, the value of the amount of money in the future is less…

Q: The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be…

A: Present Value: It refers to the amount of money received today is having more worth than the same…

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: Interest rate charged is calculated by RATE function in excel. Commission from car dealer is paid on…

Q: You are interested in a car which costs $25,000. You have a $2000 down payment, and you have a found…

A: A loan is amortized by paying equal monthly installments comprising Principal and interest. Total…

Q: You have a down payment of $10,000 saved up to purchase a new vehicle. If you are also approved for…

A: Down payment for a purchase is the immediate cash amount paid by the buyer. A series of payments of…