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A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.
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A: price of car=$3000 interest rate =5% monthly interest =5/12=0.4167% period =48months present value…
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A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…
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A: given, p=$74400 r=6.8% m=12 n=4 years (4812)
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Present Value = P + P * [ { 1 - ( 1 + r )-(n-1) } / r ] P = Periodic Payment r = rate per period n…
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A: Annual Income = $35,000 Annual Expenses=$5,000 Net Cashflow =$35,000 -$5,000 =$45,000 Ending…
Q: You want to buy a $31,000 car. The company is offering a 3% interest rate for 48 months (4 years).…
A: Monthly payment formula: monthly payment =principal×rm1-1+rm-m×n where, r = rate of interest m =…
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A: The calculation is:
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A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…
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A: The effective annual rate is the effective interest rate applicable on the loan after taking into…
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A: Annual interest rate = 4% Monthly interest rate = 4%/12 = 0.3333% Annual payment for first 5 years =…
Q: you want to buy a 25000 car. the company is offering a 2% interest rate for 48 months. what iwll…
A: Given, Cost of car = $25,000 Rate of interest = 2% p.a No. of months = 48
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A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…
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A: Monthly installment (M) = 8500 Down payment (D) = 115000 n = 48 months r = 12% per annum = 1% per…
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…
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A: Monthly payments are the periodic amounts that a loan borrower has to make on a regular basis in…
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A: The monthly payment can be calculated with the help of present value of annuity due function.
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A: Annual Percentage Rate (APR) refers to the percentage rate which shows the interest rate…
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A: Loan amount = Monthly Payment * [1-(1+i)^-n]/i + Final Payment/ (1+i)^n 170000 = Monthly Payment *…
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A: Loan amount (PV) = $ 21000 Annual interest rate = 5% Monthly interest rate (r) = 5%/12 =…
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A: Amortized loan: It is a type of loan where the borrower would make an equal periodic payment towards…
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A: Car cost = Future Value Required = 40,000 Time Period = 60 months Monthly Deposit = ? First Month…
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A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…
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A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
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A: Monthly payments of loan can be calculated by Equated monthly instalment formula which is derived…
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A: Loans are the liability of the borrower which is used to finance the requirement of the funds. The…
Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…
A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…
Q: You decide to buy a car for $16,000.00 and decide to make payments of $700 each month. If the loan…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with…
A: The Equal Montly installment is calculated with the help of following formula EMI = P × r(1 + r)n…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
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Q: You are interested in buying a brand new jalopy and expect the purchase price to be $19,000. The car…
A: Purchase Price = $19,000Down Payment = $1,000 Calculation of Loan Amount (PV):
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A: Loan Amount = $29,000 Rate = 3% Time = 3 years
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A: Loan amount acquired by the borrower for financing the purchase of any financial asset is the net…
Q: You want to buy a new sports coupe for $74,700 , and the finance office at the dealership has quoted…
A: The monthly payments is calculated by using fallowing formula Present value P = Present value…
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 buy a car for $34,000. You pay $10,000 down and finance the rest at 3% monthly over five years.…
A: Value of Car is $34,000 Down Payment is $10,000 Loan Amount (PV) is: Interest Rate (Rate) is 3%…
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…
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A: The amount of monthly payments can be found by using the EXCEL PMT function. The formula of the same…
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A: Present value is calculated by discounting the future value with the rate of interest. Present…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?