Pearson eText Foundations of Finance -- Instant Access (Pearson+)
10th Edition
ISBN: 9780135639382
Author: Arthur Keown, John Martin
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 5, Problem 43SP
(Nonannual compounding using a calculator) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow $25,000 to pay for his new car. How large will Jesse’s monthly car loan payment be if he can get a 5-year (60 equal monthly payments) car loan from the university’s credit union at an APR of 6.2 percent compounded monthly?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
After starting your first full-time job out of college, you decide to buy a new car for $12,000. Using Excel, create a complete amortization table for this car-loan: You make 36 equal end- of-month payments. The discount rate is 7.25% compounded monthly. How much would you owe after the 15th payment is made? Use excel to solve
Bernie is looking to buy a riding lawn mower for $1320. The store offers a 3-year add-on loan using simple annual. Round to two decimal places and include appropriate units with all final answers.
If Bernie wants to pay $50 per month, what interest rate can he afford?
If they charge him an 18% interest rate, what down payment would he need to make in order to have a $50 monthly payment?
(Nonannual compounding using a calculator) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow $35,000 to pay for his new car. How
large will Jesse's monthly car loan payment be if he can get a 5-year (60 equal monthly payments) car loan from the university's credit union at an APR of 6.8 percent
compounded monthly?
Jesse's monthly car loan payment will be $ (Round to the nearest cent.)
Chapter 5 Solutions
Pearson eText Foundations of Finance -- Instant Access (Pearson+)
Ch. 5 - Prob. 1RQCh. 5 - The processes of discounting and compounding are...Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 1SPCh. 5 - Prob. 2SPCh. 5 - Prob. 3SPCh. 5 - Prob. 4SPCh. 5 - Prob. 5SP
Ch. 5 - (Compound value) Stanford Simmons, who recently...Ch. 5 - (Future value) Sarah Wiggum would like to make a...Ch. 5 - Prob. 8SPCh. 5 - (Future value) Giancarlo Stanton hit 59 home runs...Ch. 5 - Prob. 10SPCh. 5 - Prob. 11SPCh. 5 - Prob. 12SPCh. 5 - Prob. 13SPCh. 5 - Prob. 14SPCh. 5 - Prob. 15SPCh. 5 - Prob. 16SPCh. 5 - Prob. 17SPCh. 5 - Prob. 18SPCh. 5 - Prob. 19SPCh. 5 - Prob. 20SPCh. 5 - Prob. 21SPCh. 5 - Prob. 22SPCh. 5 - Prob. 23SPCh. 5 - Prob. 24SPCh. 5 - (Solving for PMT of an annuity) To pay for your...Ch. 5 - Prob. 26SPCh. 5 - Prob. 27SPCh. 5 - (Loan amortization) On December 31, Beth Klemkosky...Ch. 5 - (Solving for r of an annuity) You lend a friend...Ch. 5 - Prob. 30SPCh. 5 - (Compound annuity) You plan on buying some...Ch. 5 - (Loan amortization) On December 31, Son-Nan Chen...Ch. 5 - (Loan amortization) To buy a new house you must...Ch. 5 - Prob. 34SPCh. 5 - Prob. 35SPCh. 5 - Prob. 36SPCh. 5 - Prob. 37SPCh. 5 - Prob. 38SPCh. 5 - (Compound interest uith nonannnal periods) a....Ch. 5 - (Compound interest with nonannual periods) After...Ch. 5 - Prob. 41SPCh. 5 - (Spreadsheet problem) To buy a new house you take...Ch. 5 - (Nonannual compounding using a calculator) Jesse...Ch. 5 - (Nonannual compounding using a calculator)...Ch. 5 - (Nonannual compounding using a calculator) Fords...Ch. 5 - Prob. 46SPCh. 5 - (Nonannual compounding using a calculator) Dennis...Ch. 5 - Prob. 48SPCh. 5 - (Calculating the effective annual rate) Youve just...Ch. 5 - Prob. 50SPCh. 5 - Prob. 51SPCh. 5 - (Present value) The Kumar Corporation is planning...Ch. 5 - (Perpetuities) What is the present value of the...Ch. 5 - (Complex present value) How much do you have to...Ch. 5 - (Complex present value) You would like to have...Ch. 5 - Prob. 56SPCh. 5 - Prob. 57SPCh. 5 - Prob. 58SPCh. 5 - Prob. 59SPCh. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Complex stream of cash flows) Roger Sterling has...Ch. 5 - (Future and present value using a calculator) In...Ch. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Prob. 5MCCh. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 11MC
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
- David is planning to buy a new car. Since David has not save any money, he plans to take out a loan to pay for the car. He is able to finance $43,950 with a 5 year loan. The loan has a APR of 3.25% compounded monthly. Round answers to two decimal places a. What is the minimum payment amount David will need to make for his car loan? b.How much will David pay altogether over the life of his car loan?arrow_forwardDan is contemplating trading in his car for a new one. He can afford a monthly payment of at most $500. If the prevailing interest rate is 2.4%/year compounded monthly for a 48-month loan, what is the most expensive car that Dan can afford, assuming that he will receive $6000 for his trade-in?arrow_forwardYou decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at 5.5% APR for 3 years. How much can you borrow? Round your answer to the nearest dollar.arrow_forward
- I decide to purchase a car today, The most I can really afford to spend on a car loan is $300 per month. How much will I be able to finance to get that monthly payment if the bank is offering 4.5% APR compounded monthly on a 4 year car loan? Show all workarrow_forward(Use Formula Approach or Calculator Approach) Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 60 months. What is the monthly interest rate?arrow_forwardI decide to purchase a car today, The most I can really afford to spend on a car loan is $300 per month. How much will I be able to finance to get that monthly payment if the bank is offering 4.5% APR compounded monthly on a 4 year car loan?arrow_forward
- You buy a ten-year-old car for $12,000. You decide to pay $2000down, and the used car dealer gives you a “special” rate of “9% monthly” for 48 months.a) What is your monthly payment?b) How much of your first payment goes to interest?c) How much interest do you pay for the entire loan?d) What is your final payment for this car? tvm solverarrow_forwardArnold has determined that he can afford a monthly payment of $325 for a car. If he can obtain a 4 year car loan at an annual interest rate of 3.1%, what is the maximum amount (in dollars) he can finance? Round your answer to the nearest cent. arrow_forwardSarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the amount of $3,000. She would like to borrow the remainder from a bank at an interest rate of 8% compounded monthly. She agrees to make monthly payments for a period of two years in order to pay off the loan.Select the correct answer for each of the following questions:(a) What is the amount of the monthly payment (A)?1. A = $12,000 (A/P, 0.75%, 24).2. A = $12,000 (A/F, 0.66%, 24).3. A = $12,000 (A/P, 0.66%, 24).4. A = $12,000 (A/F, 9%, 2)/12. (b) Sarah has made 12 payments and wants to figure out the remaining balance immediately after the 12th payment. What is that remaining balance?1. B12 = 12A.2. B12 = A(P/A, 9%, 1)/12.3. B12 = A(P/A, 0.66%, 12).4. B12 = 10,000-12A.arrow_forward
- After starting your full-time job out of college, you decide to buy a new car for $85,000. Create a complete amortization table in excel for this car loan: You make 84 equal end-of-month payments. The discount rate is 6.5 percent compounded quarterly. How much would you owe after the 75 th payment? Please show both regualr and formula format of the spreadsheet.arrow_forwardDan is contemplating trading in his car for a new one. He can afford a monthly payment of at most $500. If the prevailing interest rate is 2.2%/year compounded monthly for a 48-month loan, what is the most expensive car that Dan can afford, assuming that he will receive $6000 for his trade-in? (Round your answer to the nearest cent.)arrow_forwardTodd is able to pay $360 a month for 6 years to finance a car purchase. a. If the interest rate is 6 percent compounded monthly, how much can Todd afford to borrow to buy a car? b. What is the effective annual rate of Todd's loan?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
What is a mortgage; Author: Kris Krohn;https://www.youtube.com/watch?v=CFjY-58ooi0;License: Standard YouTube License, CC-BY
Topic 10 Accounting for Liabilities Mortgage Payable; Author: Accounting Thinker;https://www.youtube.com/watch?v=EPJOphrbArM;License: Standard YouTube License, CC-BY