You want to buy a new sports car from Muscle Motors for $79,000. The contract is in the form of a 48-month annuity due at an APR of 7.3 percent. What will your monthly payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Monthly payment

You want to buy a new sports car from Muscle Motors for $79,000. The contract is in the form of a 48-month annuity due at an APR of 7.3 percent. What will your monthly payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Monthly payment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

Related questions

Q: Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month…

A: Calculation of Present Value of Payments:

Q: If you buy a computer directly from the manufacturer for $2,546 and agree to repay it in 48 equal…

A: Here we will have to find the amount of monthly installments and the total interest paid. Note that…

Q: A house is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: Price of house $1,00,000 Less: Down payment $30,000 Loan Amount $70,000…

Q: What monthly payment will be required for the individual to make if the car is financed over a…

A: Compound interest is the amount of interest paid on interest which will grow the interest on loans…

Q: monthly payment amount be

A: An annuity is the regular payment of an amount at an equal interval. It is a payment of a fixed…

Q: You are to make monthly deposits of $625 into a retirement account that pays an APR of 11.4 percent…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You want to buy a new sports car from Muscle Motors for $84,000. The contract is in the form of a…

A: Present Value = P + P * [ { 1 - ( 1 + r )-(n-1) } / r ] P = Periodic Payment r = rate per period n…

Q: What monthly payment will she be required to make if the car is financed over a period of 24 months?…

A: Loan Monthly Payments: These are payments made by the borrower to the lender for the purpose of…

Q: You want to buy a new sports car from muscles motors for $79000. The contract is in the form of a…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: If you buy a stereo set for $600 and agree to pay for it in 18 equal installments at 1% interest per…

A: In the given question we need to compute the amount of monthly payments on a loan of $600

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…

A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%

Q: Today you purchase a previously owned Tesla Model 3 for $40,000. You make a down payment of $5,000…

A: Given The purchase price is $40,000 Down payment $5,000 Rate is 0.25% per month payable in 60…

Q: You want to buy a new sports car from Muscle Motors for $71,000. The contract is in the form of a…

A: Cost of Sports Car (PV) is $71,000 Time Period is 72 months Annuity Due Interest Rate is 6.9%…

Q: You purchase an RV by making a down payment of 2.56%, compounded monthly, and require you to make 36…

A: Down payment = $10,700 Monthly payment (P) = $1498.75 Interest rate = 2.56% Monthly interest rate…

Q: You want to buy a new sports car from Muscle Motors for $46,000. The contract is in the form of an…

Q: Suppose that you have a plan to pay RO 0592 as an annuity at the end of n month for 20 years in the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: You want to borrow $68,000 from your local bank to buy a new sailboat. You can afford to make…

Q: TA Corp. has a consulting contract with a firm that states that he will receive annual payments of…

A: We need to use present value of annuity due(payment due at beginning of year) formula for…

Q: You go to a phone dealer to buy a new car for 22,000 pesos financed at 3.4% APR, compounded monthly,…

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

Q: A car can be purchased for 0% down for 60 months (in lieu of rebate). It has a sticker price of…

A: First let's define what is add on interest is Add on interest is a method of calculating the…

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You are to make monthly deposits of $425 into a retirement account that pays an APR of 10.6 percent…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of Monthly Payments required can be calculated with the help of NPER function of Excel.…

Q: If you buy a computer directly from the manufacturer for $2,509 and agree to repay it in 60 equal…

A: This is the case of present value of annuity. Annuity is equal stream of cashflow at regular…

Q: You want to buy a new sports car from Muscle Motors for $44,000. The contract is in the form of an…

A: The monthly payment can be calculated with the help of present value of annuity due function.

Q: If you buy a computer directly from the manufacturer for $2.634 and agree to repay it in 36 equal…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the…

A: The loan which is paid-off by making installment payments having two components as interest mount…

Q: To buy a car, you borrow $28,000 with a term of five years at an APR of 7%. What is your monthly…

A: Loan amount (PV) = $ 28,000 APR = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period =…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay off the amount can be calculated with the help of NPER function…

Q: client at ZBX Fin Planning currently has $95,000 in their retirement account that is expected to…

A: Future value of money increases with increase in time and more deposit being made and more interest…

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: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…

A: A = P1+r100n Where A = Amount P = Principal r = Rate of interest n = Number of periods

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal…

A: 1.Calculation of monthly installments 2.Total Interest paid Given Monthly Interest rate= 1.59%…

Q: The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the…

A: Cost of car = $32,000 Down Payment = 25% Interest Rate = 6% compounded monthly Loan amount = Cost…

Q: You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the…

A: Time value concept Receiving the value today is of more value than that of receiving the same amount…

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: 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: A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…

A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…

Q: Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down…

A: First, we will calculate the present value of the amount then we will add the downpayment so as to…

Q: he price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the…

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

Q: You want to buy a new sports car from Muscle Motors for $87,000. The contract is in the form of a…

A: Here, To Find: Monthly payment =?

Q: If you buy a computer directly from the manufacturer for $2,825 and agree to repay it in 48 equal…

A: Principal = $ 2825 Number of monthly installments = 48 Monthly interest rate = 1.94%

Question

You want to buy a new sports car from Muscle Motors for $79,000. The contract is in the
form of a 48-month annuity due at an APR of 7.3 percent. What will your monthly
payment be? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
ed
Monthly payment
ook
Print
Тerences
Mc
Graw
Hill
Prey
12 of 12
Next
ort sc
4+
144
&
7
8.
4.
OP
WER T
S DF GHJ KL
LO

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Given Information:

VIEW

Calculations are as follow:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
you want to buy a new sports car from muscle motors for 44300. The contract is in the form of a 72 month annuity due at an APR of 6.05 percent. What will your monthly payment be?. ...
You want to buy a new sports car from muscles motors for $79000. The contract is in the form of a 48-month annuity due at an APR of 7.3%. What will your monthly payment be ?
You want to buy a new sports car from Muscle Motors for $44,000. The contract is in the form of an annuity due for 36 months at an APR of 8.00 percent.What will your monthly payment be?
You want to buy a new sports car from Muscle Motors for $84,000. The contract is in the form of a 60-month annuity due at an APR of 7.55 percent. What will your monthly payment be?
A company wants to have $20,000 at the beginning of each 6-month period for the next 4years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.31%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.)
A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.04%, compounded semi annually? (a)Decide whether the problem relates to an ordinary annuity or an annuity due. (B)Solve the problem. (round your answer to the nearest sent)
Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down payment of $999 you can wait for 1½ years to pay the $9,000 balance. If Lola's Furniture immediately sells the $9,000 receivable contract to the Barzini Finance Group at a discount rate of 18% compounded quarterly, how much money will Lola's actually receive for the "houseful of furniture"?
An insurance company is selling a perpetual annuity contract that pays $2,000 monthly. The contract sells for $138,000. What is the monthly return on this investment vehicle? Answer in typing