Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the purchase price, she has secured a loan from her bank at 6%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $75.32 at the end of each month for 24 months. What was the purchase price of the furniture

Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the purchase price, she has secured a loan from her bank at 6%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $75.32 at the end of each month for 24 months. What was the purchase price of the furniture

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Similar questions

Lupe made a down payment of $2,500 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $240/month for 30 mo. What is the cash price of the car? $4,433.24 $8,693.85 $6,193.85 $10,848.37 Question 16 Robin, who is self-employed, contributes $4,500/year into a Keogh account. How much will he have in the account after 20 years if the account earns interest at the rate of 9.5%/year compounded yearly? $27,637.25 O $7,790.74 $243,550.05 O $290,918.47
Lupe made a down payment of $8000 towards the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12% compounded monthly. Under the terms of her finance agreement, she is required to make payments of $420 per month for 36 months. What is the cash price of the car?
Lupe made a down payment of $2000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 13%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $250/month for 24 months. What was the cash price of the car? (Round your answer to the nearest cent.) $
Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed the balance over 48 months using a loan with a 12 percent annual nominal rate of interest. What are her monthly payments?
Diane Wallace bought a living-room suite on credit, signing an installment contract with a finance company that requires monthly payments of $55.53 for three years. The first payment is made on the date of signing and interest is 23% compounded monthly. (a) What was the cash price? (b) How much will Diane pay in total? (c) How much of what she pays will be interest? and Based on the cash price calculated in part (a), if the interest rate is changed to 20.3% compounded monthly, what is the new monthly payment?
Angelas bank gave her a 3-year add on interest loan for 7,420 to pay for new equipment for her antiques restoration business. The annual interest rate is 11.92% . How much interest will she pay? What are her monthly payments?
Kathy borrows $10,000 from the bank. For a four year loan, the bank requires annual end of year payments of $3,223.73. The annual interest rate on the loan is
Vivian plans to replace all four air-conditioners in her home. The total cost is $70,000. The loan instalment plan offered by the shop requires her to pay $10,000 cash as down payment and borrow the remaining balance. The loan will be repaid in 2 years, at a monthly flat rate of 0.8%. Vivian is required to pay $250 as administration fee for loan application. The administration fee is paid at the time of application with no refund. a. Required: i. Calculate the total interest cost and fee on Vivian's instalment plan. ii. Calculate the monthly repayment amount of the instalment plan. iii. Calculate the approximate annual percentage rate (APR).
Mayesha purchased a large screen TV for $4,000 and can pay it off in ten months with an add-on interest loan at an annual rate of 11.5%, or she can use her credit card that has an annual rate of 18%. If she uses her credit card, she will pay $400 per month (starting next month) plus the finance charges for the month. Assume that her credit card company uses the unpaid balance method to compute her finance charges and that she is making no other transactions on her credit card. Which option will have the smaller total finance charges on her loan? What is the general method that should be used to solve this problem? A. Use the formula l= Prt to find the finance charge for both the add-on and the credit card option. Choose the option that produces the lower number. O B. Multiply the cost of the TV set by the annual rate to find the finance charge for both the add-on and the credit card option. Choose the option that produces the higher number. O C. Use the formula l= Prt to find the…
Elin purchased a used car for $9,500. She wrote a check for $2,000 as a down payment for the car and financed the $7,500 balance. The annual percentage rate (APR) is 3% compounded monthly, and the loan is to be repaid in equal monthly installments over the next three years. Which of the following is most near to Elin's monthly car payment?
Lupé made a down payment of $7000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 9%/year compounded monthly, Under the terms of her finance agreement she is required to make payments of $410/month for 24 months. What in the cash price aof the car? (Round your answer to the nearest cent.)
Bridgit has purchased a new home at auction for $655,000. To be able to pay for the house, she takes out a reducing balance loan from the bank for the sum of $520,000. The bank charges interest at the rate of 8.75%, compounding quarterly. Bridgit plans to pay off the loan over a period of 20 years. a. What quarterly instalment must Bridgit pay the bank? Express your answer to the nearest cent. b. How much interest will Bridgit pay over the period of the loan? 0 1 c. Complete the amortization table for the first 2 payments made on this loan. Quarter Payment Interest Principal reduction 2 0 Working space provided: 0 0 Balance $520,000 oH .0022 c mora sauber od zodat bas obem