Question

Suppose your friend Paul is considering buying a new Honda Accord. He is going to make...

Suppose your friend Paul is considering buying a new Honda Accord. He is going to make monthly payments (at the end of each month) of $557.08 on a loan of $28,000. If the annual percentage rate is 7.20%, how long in years is the loan for?

Please show work using financial formula. NOT EXCEL FORMULA

And please show inputs for the financial calculator.

-Thanks

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider Gavin, a new freshman who has just received a Stafford student loan and started college....
Consider Gavin, a new freshman who has just received a Stafford student loan and started college. He plans to obtain the maximum loan from Stafford at the beginning of each year. Although Gavin does not have to make any payments while he is in school, the unsubsidized 6.8 percent interest owed (compounded monthly) accrues and is added to the balance of the loan. UNSUBSIDIZED Stafford loan limits: Freshman $6,000 Sophomore 6,000 Junior 7,000 Senior 7,000 After graduation, Gavin gets a...
15 years from now, your 2-year old son will be attending Harvard.  You have determined he will...
15 years from now, your 2-year old son will be attending Harvard.  You have determined he will need $85,000 per year for tuition and living expenses.  In 15 years, you will give him a lump sum payment for the entire amount he will need, assuming that he will be able to invest the money not yet needed at 4.5% interest.  You have found an investment opportunity that will yield an annual return of 6.5% on your monthly payments.  How much will you have to...
Geoffrey is the owner of a small grocery store, and is considering buying a car to...
Geoffrey is the owner of a small grocery store, and is considering buying a car to help him transport his wares. He has found a suitable used car online that he was able to negotiate to a price of $40,000. After doing a bit more research, he has found the following additional expenses involved in the purchase: Insurance and registration will cost $510 per year, payable at the start of each year Based on mileage estimates, petrol will cost $220...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an after tax income of $48,000 and budgets $30,000 for necessary expenses. This leaves $18,000 to spend on debt and savings annually. (Assume all annuity payments are in the form of ordinary...
In your answers, you should properly show your work by writing down your entries into the...
In your answers, you should properly show your work by writing down your entries into the calculator. For instance, if you use the TVM worksheet of your financial calculator to compute how long it takes to double your account balance given 5% annual interest rate, you should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT N=? --- the question mark here stands for your answer to the question. Question 6 – PV, Ordinary Annuity, Compounding [2 points]: Find...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT