You want to borrow 27,500 and can afford monthly pay of $650 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford?

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 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: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…

Q: How much should you deposit each month in order to save $20,000 in five years? The account you will…

A: Details: RATE (5.75%/12) 0.479167% PERIOD  (12*5) 60 PRESENT VALUE $0 FUTURE VALUE $20,000

Q: For $150,000, Continental Life Insurance Co. will sell a 20-year annuity paying $1200 at the end of…

A: An annuity is usually used in the retirement funds where fixed future amounts are paid in exchange…

Q: You are considering getting a mortgage for $260,000 that requires equal payments at the end of each…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of…

A: Present worth is the value of the amount in current time which is expected to be paid or received in…

Q: Today, you retire with $1,100,000 and you want to ensure that you can withdraw $1250 per week (52…

A: The question gives the following information:

Q: how much money must you put in a savings account today?

A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…

Q: You want to take out a $450,000 loan on a 20-yearmortgage with end-of-month payments. The annualrate…

A: Repayment of mortgage is made in fixed amount of instalments which includes interest and part of…

Q: You have taken out a loan that requires you to repay $200 per month for 10 years at 12% annual…

A: Given:

Q: You borrow $27,000 with a term of two years at an APR of 5%. Use the Estimation Rule for Short-Term…

A: Given:

Q: Suppose you have decided to put $200 at the end of every month in a savings account that credits…

A: Future value of annuities includes the amount being deposited and amount of compounding interest…

Q: You borrow $8,000 at an annual rate of 21%. If you repay the debt in three months, what do you owe?

A: In this question we require to calculate the amount we owe if we borrow $8000 and repay it in 3…

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Suppose your opportunity cost (interest rate/year) is 11% compounded annually.  How much must you…

A: Opportunity cost can be defined as the loss if one alternative is accepted in place of other…

Q: You buy items costing $800 and finance the cost with a fixed loan installment for 18 months at 5%…

A: As we are told that interest rate charged on the loan is simple and not compounding, moreover we are…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You have just purchased a home by borrowing $400, 000 for 30-years at a fixed APR of 3.87%. The loan…

A: Answer.  APR means Annual periodic interest rate

Q: If you pay the minimum payment per month of $49.25 on your credit card, you will pay it off after…

A: Short Term finances refers to to financing of funds for very short period of time which ranges from…

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: How many months will it take you to pay off a loan of $11,000 at 3% APR compounded monthly if you…

A: Loan = 11000 APR = 3% Monthly Compounding Interest Rate = APR / Number of compounding periods =…

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: You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirem…

A: Present Value = Monthly Cashflow X  [1-(1+i)-n]/i

Q: money is in your account after 16 months?

A: Given: Investment amount = $3000 APR =  3% compounded monthly Since, Interest is compounded monthly,…

Q: payment

A: Monthly payments are nothing but the payment which has to be made by the borrower every month. The…

Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…

A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…

Q: Suppose you have a student loan of S25,000 with an APR of 12% for 30 years. Complete parts (a)…

A: Loan amount (PV) = $ 25000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 30…

Q: You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a…

A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…

Q: If you have $125,000 saved for retirement, how many months will it last if you earn an annual…

A: GIVEN, PV = $125000 R=5.5% M=12 A= $1400 Beginning of month withdrawals

Q: You have taken out a 60-month, $26,000 car loan with an APR of 6%, compounded monthly. The monthly…

A: Loan Amortization Schedule gives the information of your loan and how you'll repay it. The payment…

Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…

A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…

Q: You want to save for a down payment on a new home in the future. You can invest $225 at the end of…

A: We need to use future value of annuity formula to calculate amount of saving at the end of 5 year…

Q: Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate,…

A: Present value of Annuity  is the current value of payments made over a specified period of time at a…

Q: At the moment you don't have any money saved for retirement, but have resolved to start making $425…

A: Given: Monthly payments "PMT" = $425 Effective annual rate = 9.9% Future value "FV" = $2400000

Q: You plan to save money for a down payment of $37,000 to purchase an apartment. You can only afford…

A: Amount needs to save "FV" is $37,000 Savings per Quarter "PMT"  is $1,250 Interest rate is 3.71%…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…

A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…

Q: You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must…

A: Given months = 30 cost = 16716 APR = 2.91%

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: what will be your monthly​ payment?

A: Sum of money borrowed if not paid immediately, then over a period of time as per agreement is…

Q: What is the monthly payment for a 5-year car loan of $14,000 that has an APR of 6% compounded daily…

A: An amortized loan is repaid in equal installments. Each installment comprises interest on loan…