The price of a new car is $36,000. Assume that an individual makes a downpayment of 25% toward the purchase of the car and secures financing for thebalance at the rate of 7 %/year compounded monthly. (Round your answers to thenearest cent.)(a) What monthly payment will she be required to make if the car is financed over aperiod of 48 months? Over a period of 72 months?48 months72 months$(b) What will the interest charges be if she elects the 48-month plan? The 72-monthplan?48-month plan72-month plan69$

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Answered: The price of a new car is $36,000.…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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The price of a new car is $36,000, Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 48 months? 24 months $ 48 months (b) What will the interest charges be if she elects the 24-month plan? The 48-month plan? 24-month plan 48-month plan
The price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 60 months? Over a period of 72 months? 60 months 72 months (b) What will the interest charges be if she elects the 60-month plan? The 72-month plan? 60 months 72 months
The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7year compounded monthly. (Round your answers to the nearest cent.) (a) What monthily payment will she be required to make if the car is financed over a period of 24 months? Over a period of 72 months? 24 months $ 1074.54 72 months (b) What will the interest charges be if she elects the 24-month plant The 72-month plan? 24-month plan $ 2670 72-month pian Need Help?
The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 8%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 60 months?
The price of a new car is $20000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at a rate of 4.2% per year compounded monthly. What monthly payment will the individual be required to make if the car is financed over a period of 48 months? What will the individual pay in interest charges over the period of 48 months?
The price of a new car is $24,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 14%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 24 mo? Over a period of 48 mo? 24 mo $ 48 mo $ (b) What will the interest charges be if she elects the 24-mo plan? The 48-mo plan? 24 mo $ 48 mo $
Susan Carver will purchase a home for $280,000. She will use a down payment of 18% and finance the remaining portion at 5.7%, compounded monthly for 30 years. Complete parts (a) through (c) below. (a) What will be the monthly payment? Susan will pay $______ each month. (Round to the nearest cent as needed.) (b) How much will remain on the loan after making payment for 12 year. The amount remaining on the loan will be $______ (c) How much interest will be paid on the total amount of the loan over the course of 30 years? The amount of interest that will be paid is $____ (Round to the nearest cent as needed.)
Susan Carver will purchase a home for $500,000. She will use a down payment of 23% and finance the remaining portion at 6.6%, compounded monthly for 35 years. Complete parts (a) through (c) below. (a) What will be the monthly payment? Susan will pay $ each month. (Round to the nearest cent as needed.) (b) How much will remain on the loan after making payments for 10 years? The amount remaining on the loan will be $ (Round to the nearest cent as needed.) (c) How much interest will be paid on the total amount of the loan over the course of 35 years? The amount of interest that will be paid is $ (Round to the nearest cent as needed.)
To help finance the purchase of a house and lot, a couple borrows P350,000. The loan is to be repaid in equal monthly installment over a period of 8 years. If the interest rate is converted monthly, how much is the monthly payment at 15% interest, m=12?
A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly installments for 6 years. If the interest rate on this loan is 5.5% per year, compounded monthly, what is the amount of each payment? (Round your answer to the nearest cent.) Submit Question
John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P 450,000.00. What cash payment will be necessary so that the balance can be liquidated by payments of P 20,000.00 at the end of each month for 20 months when interest is charged at the rate of 8% compounded monthly?
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.

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