You want to borrow $64,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? (Do not round intermediate calculations and and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Q: You need to have 59,173 dollars to buy a new car 5 years from now. How much do you need to save at…

A: An annuity is the sum total of all the periodic payments or investments made over the period of time…

Q: In one instance, a financial institution loaned you $20,000 for two years at an apr of 4.75% for…

A: Interest refers to the cost of borrowing money from the lender.

Q: Suppose on January 1 you deposit $1000 in an account that pays a nominal, or quoted, interest rate…

A: Future value is the value of an asset that grows after a specific period of time. The future value…

Q: You have a loan outstanding. It requires making five annual payments of $8,000 each of the end of…

A: Given: Amount = $8000 Number of periods = 5 Rate of interest = 7%

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: Pursell Bank offers you a five-year loan for $100,000 at an annual interest rate of 6.8 percent.…

A: Here, Loan Amount is $100,000 Interest Rate is 6.8% Loan Period is 5 years Compounding Period is…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: rescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What…

A: The value of money changes with time. Therefore, the time value of money considers the worth of…

Q: You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are…

A: Borrowings are the loans taken from banks or non-banking financial institutions, to meet its…

Q: You borrowed $550,000 from a bank at an interest rate of 50% compounded quarterly to purchase a new…

A: Rate of interest monthly = 50% / 12 = 4.1666% Periods = 12 * 2 = 24 months Monthly Installment =…

Q: You want to borrow $44,965 from your local bank to buy a new sailboat. You can afford to make…

A: Solution Given Amount to be borrowed $44965 Monthly payments $1140 Number of period…

Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…

A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…

Q: You borrow $22997 to buy a car. You will have to repay this loan by making equal monthly payments…

A: The monthly payment of a loan refers to the regular payment of the amount for a fixed loan amount.…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: You want to borrow $65,000 from your local bank to buy a new sailboat. You can afford to make…

A: APR or Annual Percentage Rate implies for interest rate applicable on borrowed amount for each year…

Q: Which is a better choice in buying a washing machine worth ₱12,700.00? A. Avail of the instalment…

A: From all options, let's find the interest charged. For option A, n = 18 months Monthly payment (M) =…

Q: You have just taken out a $16,000 car loan with a 8% APR, compounded monthly. The loan is for five…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend…

A: Given, New home $240,000 Money at an APR of 3.25 percent for 360 month loan Balloon monthly payments…

Q: Solve Problem 20.11 using Excel.

A: Loans refer to the amount that is borrowed on credit by the individual or the company from the banks…

Q: If you borrow $2,900 and agree to repay the loan in six equal annual payments at an interest rate of…

A: a. Present value of payment = Payment *[1-(1+interest rate)^-time period]/rate $2,900=Payment *…

Q: After making the thirtieth payment of $582.48 on your car loan, you wanted to find out how much is…

A: Amortization: Process of reducing loan balance in a systematic manner is called amortization.…

Q: You have a loan outstanding. It requires making five annual payments of $7,000 each of the end of…

A: In order to remain indifferent between the two options,One large payment at the end of the loan’s…

Q: magine you have a credit card balance of $1,000 that you would like to pay off within one year. The…

A: The credits cards are settled on the monthly payments and are paid by monthly payments and these…

Q: In one instance, a financial institution loaned you $90,000 for two years at an APR of 3.75% for…

A: Computation:

Q: If you take out an $7,900 car loan that calls for 60 monthly payments starting after 1 month at an…

A: Given information: Car loan amount $7,900 Number of periods is 60 monthly payments APR is 12%

Q: You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years.…

A: Purchase Price of Car = 10,000 Time Period (N) = 6 years i.e. 72 months Down Payment = 10% Loan =…

Q: Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a…

A: Monthly payment can be calculated using the present vale of annuity formula. Present value of…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: An effective annual rate is the modified interest rate from the nominal rate that represents the…

Q: and you cannot cancel on the due date, so you must cancel with a delay of 25 days, it is requested:…

A: Interest is the fee paid to a lender for using the funds. It is the compensation paid to an investor…

Q: Prescott Bank offers you a five-year loan for $54,000 at an annual interest rate of 7.5 percent.…

A: The annual loan payment is the regular installment of the total loan, which repays at a regular…

Q: After making the twenty-sixth payment on your car loan, you wanted to find out how much is left of…

A: Loan amount (PV) = $27000 Interest rate = 7.1% Monthly interest rate (r) = 7.1%/12 =…

Q: You have just borrowed $120,000 to buy a condo. You will repay the loan in equal monthly payments of…

A: a. Calculate the monthly interest rate as follows: Monthly interest rate is 1.25%

Q: A homebuyer wishes to take out a mortgage of $200,000 for a 40-year period. What monthly payment is…

A: Mortgage loan=$200,000 Time period=40 years Interest rate=11% We can calculate the monthly payment…

Q: A local finance company quotes a 12 percent interest rate on one-year loans. So, if you borrow…

A: Quoted rate can be calculated using the RATE function in excel.   Rate function = RATE ( nper, pmt ,…

Q: You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of…

A: The annual percentage rate (APR): It is the total interest expressed as percentage paid on an loan.

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: If you borrow $2,400 and agree to repay the loan in four equal annual payments at an interest rate…

A: Given information: Borrowed amount $2,400 Interest rate is 10% Number of periods 4 equal annual…

Q: You have taken out a 60​-month, ​$27,000 car loan with an APR of 7​%, compounded monthly. The…

A: Amount towards Interest = Outstanding balance*periodic interest rate Amount towards principal =…

Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…

A: Using Excel PV function

Q: You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly payments of…

A: a. Calculate the monthly interest rate as follows: Monthly interest rate is 0.75%

Q: You are ready to buy a house and you have $15,000 for a down payment and closing costs. Closing…

A: "Hi, Thanks for the Question, Since you asked multiple question, we can provide solution of first…

Q: You have just borrowed $250,000 to buy a condo. You will repay the loan in equal monthly payments of…

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

Q: A recent college graduate buys a new car by borrowing $18,000 at 8.4%, compounded monthly, for 5…

A: Borrowing = 18,000 Compounding Monthly, hence we will divide interest by 12 and multiply time period…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: A mortgage, often known as a mortgage loan, is a contract between you (the borrower) and a mortgage…

Q: You want to buy a car and you want your payments to be $500 per month.  You can finance the car for…

A: Equated monthly installment (EMI):   = [P×R×(1+R)n] ÷ [(1+R)n-1]

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.