You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,450, but no more. Assuming monthly compounding, what is the highest interest rate you can afford on a 60-month APR loan?
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: Loan pay-off: It means paying the remaining loan balance in just one payment.
Q: t to buy a car worth ₱808,000 at Hyundai Branch through EastWest Bank’s 5-year car loan program.…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: You borrow $10,000 from a bank for three years at an annual interest rate, or annual percentage rate…
A: The rate that is charged at an annual basis on the borrowing funds as well as earned annually on…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: Given Information in the Question:- Loan Amount is $20,000 Loan Period is 5 Years or 60 months…
Q: A person needs $18,000 immediately as a down payment on a new home. Suppose that she can borrow…
A: Continuously compounded interest rate refers to the interest rate that is calculated on the…
Q: You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted…
A: given, p=$74400 r=6.8% m=12 n=4 years (4812)
Q: You want to borrow $64,000 from your local bank to buy a new sailboat. You can afford to make…
A: The amount to be borrowed is $64,000 The monthly payment that can be afforded is $1,100 The time…
Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…
A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment PV - Loan amount i.e. $10,742 R…
Q: Stan Slickum has a used car that can be bought for $8,000 cash or for a $1,000 down payment and $800…
A: Given information: Payment is $800, Purchase price is $8,000 Down payment is $1,000 Number of months…
Q: Your car loan requires payments of $1,000 per month over the next18 months and payments of $2,000…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash…
A: Ordinary annuity are the PMTs which are made at the end of the period.
Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…
A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…
Q: Assume you graduate from college with $32,000 in student loans. If your interest rate is fixed at…
A: given, P = $32000 r=4.9% m =12 (monthly compounding) n = 10 year
Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…
A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1
Q: You want to borrow $65,000 from your local bank to buy a new sailboat. You can afford to make…
A: APR or Annual Percentage Rate implies for interest rate applicable on borrowed amount for each year…
Q: You want to buy a new sports coupe for $132,500, and the finance office at the dealership has quoted…
A: The effective annual rate is the effective interest rate applicable on the loan after taking into…
Q: You want to borrow $68,000 from your local bank to buy a new sailboat. You can afford to make…
A:
Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…
A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…
Q: A student graduates from college with $31,000 in student loans with a 5.6% annual simple interest…
A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in equal…
Q: a. A consumer loan worth ₱75,000 is to be repaid in two years at 6% compounded monthly. What is the…
A: a) Loan (L) = P 75000 n = 2 years = 24 months r = 6% per annum = 0.5% per month Let A = Monthly…
Q: You want to borrow $75,000 from your local bank to buy a new sailboat. You can afford to make…
A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…
Q: You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend…
A: Given, New home $240,000 Money at an APR of 3.25 percent for 360 month loan Balloon monthly payments…
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: What is the monthly loan payment?
A: A personal loan is an unsecured loan and can be easily received without a need to pledge collateral…
Q: You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted…
A: APR refers to annual percentage rate. An APR is the annual rate that is charged for borrowing or can…
Q: You have an outstanding student loan with required payments of $825 per month for the 42 months. The…
A: Monthly payment refers to the equal payments that are required to be paid by the borrower to 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 amount is the amount borrowed from the financial institutions such as banks, corporate houses,…
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: 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: Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of…
A: Annual rate of return for dealer is the nominal annual interest rate that is charged by the dealer…
Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…
A: The present value of annuity refers to the current value of regular payments made at fixed intervals…
Q: Suppose you purchase a car for a total price of $24,790 including taxes and licensee and finance…
A: To find the monthly payment, we will use the present value of annuity formula and adjust it to find…
Q: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
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: You want to borrow $115,000 from your local bank to buy a new sailboat. You can afford to make…
A: Annual Percentage Rate is the annual rate of interest charged from borrowers for the payment to…
Q: How much downpayment should you put at the time of purchase? how would i calculate this in excel?
A: Downpayment: It refers to the amount of money paid by the buyer in the early phase of purchasing…
Q: If you buy a computer directly from the manufacturer for $2,241 and agree to repay it in 48equal…
A: Using Excel PMT function.
Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…
A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…
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: You borrowed $600,000 from a bank at an interest rate of 70% compounded quarterly to purchase a new…
A: A loan is an amount borrowed by one person from another person at a pre-determined interest rate.…
Q: You have accepted a loan in an amount of $15,000 for your new car. You have agreed to pay the loan…
A: Here, Loan Amount is $15,000 Time Period is 4 years Interest Rate is : 9% 6% 7% 8% Compounding…
Q: Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated…
A: The real interest that an investor earns on the investment and a borrower pays on loan after…
Q: You have a down payment of $10,000 saved up to purchase a new vehicle. If you are also approved for…
A: Down payment for a purchase is the immediate cash amount paid by the buyer. A series of payments of…
You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to
make monthly payments of $1,450, but no more. Assuming monthly compounding, what is the
highest interest rate you can afford on a 60-month APR loan?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- You want to borrow $77,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?you want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly payments of $425, but no more. assuming monthly compounding what is the highest annual rate (APR) you can affor on a 72-month loan?You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graph
- You want to borrow$60000from your local bank to buy a sailboat. You can afford to make monthly payments of $1300, but no more. Assuming monthly compounding, what is the highest rate youcan afford on a 60 month APR loan?You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 180 - month loan. However, you can afford monthly payments of only $1,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,000? Multiple Choice $ 301,801.43 $115,924.72 $323, 580.91 $311, 135.49 $106, 142.4You want to buy a $120,000 house, and you apply for a mortgage loan. The bank requires a 20% down payment. It will give you a 25-year loan at 8.75% annual interest rate, payable in monthly installments. How much is your monthly payment? use monthly compunding formula
- You want to borrow $59,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100 but no more. Assuming monthly compounding, what is the hughest rate you can afford on a 66-month APR loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal placesYou want to borrow $59,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100 but no more. Assuming monthly compounding, what is the hughest rate you can afford on a 66- Training month APR loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal placesYou need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at an APR of 3.25 percent for this 360-month loan. However, you can afford monthly payments of only $975, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $975?
- You want to borrow $65,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,100, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan? (Do not round intermediate calculations and and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)You need a 20-year, fixed-rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950? Multiple Choice O O $88,924.29 $103.581.46 $386,349.21 $374,758.73 O $401,803.18You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your bank will lend you the money at a 5.35 percent APR for this 300-month loan. However, you can only afford monthly payments of $450, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $450? (Do not round intermediate calculations. Round the final answer to 2 decimal places.