Your company bought equipment for $25,000 by paying 10% down and the rest on credit. The credit arrangement is for 5 years at 7% interest. After making 20 payments, you want to pay off the loan. How much do you owe?

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

Q: An investment that cost ₱300,000 was placed in a bank and the bank gave you a 4% compound interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Given:

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: Ben Spendlove just purchased a new stereo system for $975 and will be making payments of $45 per…

A: The amount borrowed from bank is known as loan. The interest rate on loan can either be charged…

Q: Assuming that the dealership offers you 5-year loan at 4.7% compounded monthly, what payments would…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: In order to buy a car, you borrow $30,000 from a friend at 8%/year compounded monthly for 4 years.…

A: Loan amount (PV) = $ 30,000 Interest rate = 8% Monthly interest rate (r) = 8%/12 =…

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 buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly. What is…

A: Interest: it is a finance cost that charged on borrowed value for specific period.

Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…

A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…

Q: In order to purchase another truck, Beatty Transport recently obtained a $125,000 loan for five…

A: Given Information:Loan amount is $125,000 Number of years is 5 Interest rate is 7.8% (semi-annual)

Q: Columbia Corporation deposited $2,000 in an account that pays 12% interest annually. If the interest…

A: Continuous compounding of an amount of $2,000 at an interest rate of 12% and for a period of 20…

Q: You took out a mortgage for $400,000. You need to pay $3,640 every month for 15 years.

A: Given, The mortgage amount is $400,000 Monthly rate is $3,640 term is 15 years

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized…

A: "Hi, As you posted multiple questions, we will answer the first question for you as per guidelines.…

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: Suppose that 10 years ago you bought a home for $160,000, paying 10% as a down payment, and…

A: A mortgage is a loan on a property where the collateral to the loan is the property itself.

Q: How much money will the bank loan you? How much can you offer for the house?

A: Loan payments: These are payments made by the borrower to the lender of the loan. These payments…

Q: Your company has a $100,000 loan for a new security system it just bought. The annual payment is…

A: To find the number of years in which the loan would be paid off. One can use NPER function in excel.…

Q: You want to buy a $330000 home. You plan to pay $33000 as a down payment, and take out a 20 year…

A: given, price =  $330000 downpayment = $33000 principal = $330000 - $33000 = $297,000 n=20 m=12…

Q: Suppose you wanted to buy a $200,000 house. You have $30,000 cash to use as the downpayment. The…

A: Given PV = amount of loan = 200000-30000 = $ 170000 r = rate of interest = 6/12 = 0.05 n = number of…

Q: Lush Gardens Co. bought a new truck for $70,000. It paid $7,000 of this amount as a down payment and…

A: Loan payback refers to the process of returning borrowed funds to the lending institution or…

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

A: For determination of equal monthly payment(PMT), we need to use loan amortisation formula below. PMT…

Q: You took out a loan 10 years ago that had the following terms. Amount $1,200,000, rate 5.5% and 30…

A: Loan Amount = $1,200.000 Interest rate = 5.5% Time Period = 30 Years Refinance Fee = 5% After 10…

Q: An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment.…

A: Cost of house = $100,000 Down payment = $20,000 Interest rate = 9% Time period = 20 years  Payment…

Q: Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4…

A: Calculations are done in excel so there is no intermediate rounding effective monthly interest rate…

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

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: How much are the monthly payments?

A: An interest is charged by bank or financial institutions over the borrowed amount. The sum payable…

Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

A: The number of months to stay will be around 6 months.

Q: A small manufacturing company borrowed $1 million and repaid the loan through monthly payments of…

A: Goin in the interest rate on loan - It is the internal rate of return required for the present value…

Q: Stereo Inc. sells a stereo system for $400 down and monthly payments of $80 for the next 5 years. If…

A: The cost of an asset purchased on loan is calculated as the present value of the periodic payment.…

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

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: You are going to buy new machinery worth$36,200. The dealer computes your monthly paymentto be…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is to…

A: Actual interest rate here will be calculated by dividing interest by net amount received. Actual…

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

A: Monthly payments of loan can be calculated by Equated monthly instalment formula which is derived…

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

A: A loan is a method through which an individual can borrow money from a financial institution for…

Q: A borrower had a loan of $70,000.00 at 6% compounded annually, with 8 annual payments. Suppose the…

A: The question is based on the concept of Loan & Amortization.

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: Kenworth Imaging got a $700,000 loan that came with a choice of two different repayment schedules.…

A: The computation is done below:

Q: !

A: Compound Interest Compound interest refers to the interest that includes interest on principal as…

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…

Q: If you borrowed S 15,000 to be repaid in 20 equal quarterly payments and after your 10th payment you…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Calculate the effective annual interest rate being charged for the loan.

A: Effective Annual Interest Rate EAR = (1+in)n -1 where: i=Nominal interest rate n=Number of periods​…

Q: You want to buy a $22,000 car. The car company is offering a 5% interest rate for 60 months (…

A: Installment amount is the amount of periodic payments a borrower has to make to its lender. It…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.