The manager of Bob's Yacht Sales has approved your application for credit. The maximum payment she approved is $80 a month for 48 months. The APR is 12.3 percent. What is the maximum price of a boat you can afford to purchase using the credit offered by the store?
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- The manager of Steve’s Audio has approved Daisy’s application for 24 months of credit at maximum monthly payments of $45. If the annual percentage rate (APR) is 19.2 percent, what is the maximum initial purchase that Daisy can buy on credit? Can the calculator and excel solution be provided?You decide to buy a $ 1,500 piece of furniture at a local furniture store. The furniture store asks you for a 20% down payment and formulates a 12-month plan to pay the rest at a 25% annual rate.The size of the monthly payments is $ 175. į What will be the effective annual interest that the furniture store is charging you?To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is[$10,000 (0.1) (35) + $10,000]/35 = $385.71/month. If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?
- An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at the end of each month, for the first two years for a car priced at $12,000. The APR on the vehicle is 5.04% and the total term of the loan is 5 years. What is the monthly payment for the remaining three years? Interest is payable during the entire five year period.Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $43,000 loan at 4% for 48 months. What is his monthly payment by formula? (Round your answer to the nearest cent.) Monthly PaymentKimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture she wishes to purchase costs $3,600, with no down payment required. What are the total finance charges over that four-year period? Round your answer to the nearest dollar.
- Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $31,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $526 for 60 months. Kyle has also arranged for a loan from his bank with a 7 percent APR. Use the Run the Numbers worksheet to advise Kyle about whether he should use the dealer financing or take the rebate and use the financing from the bank. Round your answer to two decimal places. Adjusted APR (dealer financing): % Kyle should use -Select-the dealer financingthe financing from the bankItem 2 .Blush Inc., sold a kitchen appliance that costs $1,000.00 with 5-year financing to a customer who made a down payment of $510.00. What should be the size of the loan payments at the end of every month if interest of 9.00% compounded monthly is charged? You plan to save money for a down payment of $39,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 4.25% compounded monthly. How long will it take you to save the planned amount?An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $469. Note that 72 payments × $469 per payment = $33,768, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.)
- You have a friend who runs up a balance on hiscredit card by buying new furniture to replace thefurniture he has. The interest rate on the balance is15 percent per month. The furniture store offers alayaway plan with monthly payments equivalentto an interest rate of 10 percent per month. Explainto your friend how he could manage his financesmore sensiblyKimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture she wishes to purchase costs $3,600, with no down payment required. 1. What are the total finance charges over that three-year period? Round your answer to the nearest dollar. 2. How would the payment change if she could afford a down payment of $600 with four years of financing? Round your answer to the nearest cent.J. designer just recently open as an upscale dress shop in hangu area. The owner is trying to decide whether to take the discount offered fron his suppliers, or whether to pay at the end of the month. J. suppliers are offering him a 5% discount if he pays within 20 days; otherwise, the balance is due 40 days after purchase. What are J. nominal and effective annual costs of trade credit ?
