Business MathWorksheet 8.2: Installment loans-Amount Financed NameBackground: An installment loan is repaid in several equal payments over a specified period of time.Usually, you make a down payment to cover a portion of the cash price of the item. The amount youfinance is the portion of the cash price that you owe after making the down payment.Amount Financed = Cash Price - Down PaymentDown Payment = Cash Price x Percent1. Flora Quinton is buying a new air compressor for her auto repair shop. It sellsfor $1,299. She makes a down payment of $199 and finances the remainder.How much does she finance?2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of$2,358.60. The down payment is $200.00. What is the amount financed3. An office remodeling project costs $15,880. If you pay $3,680 towards theproject, how much do you finance?

Amount financed refers to the total amount of credit borrowed by a borrower, which is the difference…

1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?

1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Finance Amount Financed Monthly Payment Number of Rebate Payments Made Loan Charge Rebate Payoff Payments Fraction $1,800 18 $128.89 12 Enter a number.
7. Calculating finance charges using the discount method and APRon a single-payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done the same way they’re computed using the simple interest method. Under the discount method, a borrower receives the principal less the finance charges. For example, if the principal is $6,000 and the finance charges are $900, the borrower will receive $5,100. The following equation computes the finance charges on your loan: FdFd = FsFs = P x r x t In the equation, FdFd is the finance charge for the loan. What are the other values? P is the principal amount of the loan. R is the stated annual rate of interest. T is the term of the loan in years. You’re borrowing $4,000 for a year and a half with a stated annual interest rate of 10%. Complete the following table. (Note: Round your answers to the nearest dollar.)…
rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Finance Monthly Payment Amount Number of Rebate Payments Made Loan Charge Financed Payments Fraction Payoff Rebate $4,700 36 $168.33 28 0.044 $ 60 2$ 1,286
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Amount Financed Number of Payments Monthly Payments Rebate Payment Made Fraction Finance Charge Rebate $4,700 36 $167.33 29 15/666 X $ 85.76 Loan Payoff x $785 89
Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on interest loan. (Round your answers to the nearest cent.) Purchase (Cash) Price Down Payment Amount Financed Add-on Interest Number of Payments Finance Charge Monthly Payment $50,900 25% $ Incorrect: Your answer is incorrect. 10.8% 60 $ Incorrect: Your answer is incorrect. $ Incorrect: Your answer is incorrect.
A borrower has two alternatives for a loan: (1) issue a $630,000, 75-day, 6% note or (2) issue a $630,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. < (1) $630,000, 75-day, 6% interest-bearing note: $ (2) $630,000, 75-day note discounted at 6%: $ c. Alternative is more favorable to the borrower because the borrower
1) Use the Loan worksheet to complete the loan amortization table.  In cell F2, insert the IPMT function to calculate the interest for the first payment. Copy the function to the range F3:F25. (The results will update after you complete the other functions and formulas.) 2) In cell G2, insert the PPMT function to calculate the principal paid for the first payment. Copy the function to the range G3:G25. 3) In cell H2, insert a formula to calculate the ending principal balance. Copy the formula to the range H3:H25. 4) Now you want to determine how much interest was paid during the first two years.  In cell B10, insert the CUMIPMT function to calculate the cumulative interest after the first two years. Make sure the result is positive. 5) In cell B11, insert the CUMPRINC function to calculate the cumulative principal paid at the end of the first two years. Make sure the result is positive. 6) You want to perform a what-if analysis to determine the rate if the monthly payment is…
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Finance Amount Financed Number of Monthly Payments Payments Payment Made Rebate Fraction Charge Rebate $4,600 36 $163.33 32 +A $ Loan Payoff
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Amount Number of Monthly Financed Payments Payment $4,700 36 $166.33 Payments Made 29 Rebate Fraction LA Finance Charge Rebate LA Loan Payoff
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,800 18 $127.89 14 $ $
Find the following. (Round your answers to the nearest cent.) FinanceCharge Number ofPayments Frequency Amount Number ofPayments Left $9.10 12 Monthly $15 5 (b) the amount needed to pay off the loan

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