You want to buy a car for $25000 that has to be paid in 5 years. If the car dealer agrees to finance your car at 8%, what would be your annual payment for the car

Q: t to buy a car worth ₱808,000 at Hyundai Branch through EastWest Bank’s 5-year car loan program.…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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

A: Given:

Q: You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of…

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

Q: After deciding to acquire a new car, you can either lease the car or purchase it with a three-year…

A: Lease is a way to get the asset for a fixed time period by paying periodicals payments to other…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: Balloon payment calculation:

Q: ou take out a 6-year amortized loan to buy a new car. After making monthly payments of $242.30 for 4…

A: Amortized loan A loan with periodic payments that are applicable to the principal as well as 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: When you purchase your car, you take out a five-year annual-payment loan with an interest rate of…

A: Here we will first have to determine the amount of loan taken. We are provided with annual payments,…

Q: You are planning to buy a new car/truck (of your dreams) 7 years’ time at a cost of $134,956. How…

A: Here, The monthly rate of interest is 'r' Number of months is 'n'

Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide to…

A: Solved using Financial Calculator  Assuming Interest rate is 0.9% per annum compounded monthly…

Q: You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash that you…

A: The value for mortgage would be considered as the agreement between the bank and individual party…

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: The present worth an investment is based on the time value of money concept. The present value of…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: The question is based on the concept of Loan and mortgages

Q: Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: You have decided to buy a car with price tag of $30,000 but you are able to negotiate the price down…

A: A loan is a debt amount borrowed by a deficit unit from a surplus unit. The borrower is liable to…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: Given information: Purchase amount = $20,000 Down payment = $2,000 Loan Amount = $20,000 - $2,000 =…

Q: You need to borrow $80,000 to purchase a car. You qualify for a 7-year car loan that requires you to…

A: Borrowing = 80,000 Time Period = 7 years or 84 months Monthly Compounding Interest Rate = 2.28%/12 =…

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 dealer offers to buy your car for $9,500 so that you can purchase a new one. If your monthly…

A: The question is based on the concept of calculation of present value of future loan payments and get…

Q: You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: You want to buy a new car. You can afford payments of $500 per month and can borrow the money at an…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: ave selected a new car to purchase for $19,500. If the car can be financed over a period of 4 years…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: You are thinking of purchasing a house. The house costs $300,000. You have $43,000 in cash that you…

A: We need to use loan amortization formula to calculate annual payment Annual payment(PMT)…

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: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

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: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Down payment  It is the payment generally made in cash, in the early stages of the purchase of both…

Q: You buy a $250,000 house and pay $50,000 down.  The loan is for 25 years at 6% monthly. If you pay…

A: Using the PMT and NPER function in excel

Q: You want to buy a car with a local bank that will lend you $20000. The loan will fully amortized…

A: The amortized loan is a loan that repays with regular installments. The monthly payments of a loan…

Q: You have taken out a 5 year loan from a bank to buy an engagement ring.  The ring costs $5000, you…

A: Timeline of project refers to arrangement of all transaction related to a project in chronological…

Q: A. If i buy a car from a dealership for $27000 with 2.5% paying monthly for a total of 3 years how…

A: Future value :— It is the value of present money in the future date.    Future value = Present Value…

Q: Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of…

A: Annual rate of return for dealer is the nominal annual interest rate that is charged by the dealer…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Monthly payment is calculated by the annuity for the given present value and calculated by present…

Q: You are looking to buy a car. You can afford $650 in monthly payments for five years. In addition to…

A: The formula used to compute present value of annuity as follows: Present value=PMT×1-11+imN×mim

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: You buy a new truck for your trailer that costs $55,000. What are your monthly payments for a 5 year…

A: Equated monthly installments are equal installments that involve both principal and interest…

Q: You want to borrow $115,000 from your local bank to buy a new sailboat. You can afford to make…

A: Annual Percentage Rate is the annual rate of interest charged from borrowers for the payment to…

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 first three sub-parts for…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose you purchase an automobile for a selling price of $1,600,000.  You make a down payment of 5%…

A: The total cost of an automobile includes the selling price of an automobile, sales tax, and license…

Q: mith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: Given, Data 1: Price of car is $15,000. Buying of the car by withdrawing the amount from saving…

Q: what price of car can you afford?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: You want to buy a new car. You can afford payments of $275 per month and can borrow the money at an…

A: Computation of Present value is as follows: Explanation of Computation of Present Value is as…

Q: You want to buy a $13,000 car. The company is offering a 5% interest rate for 60 months (5 years).…

A: The amount of monthly payments can be found by using the EXCEL PMT function. The formula of the same…

Q: You are buying your first car and need to borrow P1,600,000 over 5 years. If interest is 6%, what…

A: The monthly payment amount can be calculated with the help of present value function

Q: You want to buy a car, and the local bank will lend you $20,000. The loan will be fully amortized…

A: Present value (PV) refers to the present value of a future sum of money or some sort…

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.