Question

A consumer purchased a new furniture by borrowing $1,500 using the store’s credit plan, which charges...

  1. A consumer purchased a new furniture by borrowing $1,500 using the store’s credit plan, which charges 9% compounded monthly. What are the monthly payments if the loan is to be repaid in 4 years?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A consumer purchased new furniture by borrowing 8981 using the store’s credit plan which charges 9%...
A consumer purchased new furniture by borrowing 8981 using the store’s credit plan which charges 9% compounded monthly. If the loan is to be repaid as a uniform series of monthly payments over 5 years , how much does the consumer still owe just after making the 20th payment?
Suppose you want to buy a new set of furniture at a store, which offers you...
Suppose you want to buy a new set of furniture at a store, which offers you a monthly installment plan but requires that you make the first payment on the day you make the purchase. The entire furniture set costs $9,200. The loan period is for 5 years, and the interest rate is 19.99% compounded monthly. What are the monthly payments?
A company needs a new piece of equipment which can be purchased today for $7,250. Alternatively,...
A company needs a new piece of equipment which can be purchased today for $7,250. Alternatively, a leasing agreement is available that requires payments of $192 at the beginning of each month for three years and provides a $1,500 option to buy the equipment at the end of three years. Interest is 8% compounded monthly. Using the discounted cash flow method (DCF), should the equipment be leased or purchased?
David purchased a new SUV today for $40,000. It was financed using a six-year loan with...
David purchased a new SUV today for $40,000. It was financed using a six-year loan with a 5 percent interest rate (compounded monthly). How much will David owe on his vehicle loan after making payments for four years? a. $20,402.82 b. $19,852.42 c. $14,694.77 d. $18,985.57
ABC. Corp. purchased new equipment by making a down payment of $1,500 and payments of $265...
ABC. Corp. purchased new equipment by making a down payment of $1,500 and payments of $265 at the end of each month for four years. Interest is 9.0% compounded quarterly. a. What was the purchase price of the new equipment? ___________ b. How much interest will be paid?
A borrower has a $83000 loan with the "Easy-Credit" Finance Company. The loan is to be...
A borrower has a $83000 loan with the "Easy-Credit" Finance Company. The loan is to be repaid over 26 years via monthly payments at 3.5%/year compounded monthly. Just after the 78th payment, the borrower learns that his local bank would lend him money at 1.5%/year compounded monthly. Assuming that the contract stipulates an early repayment penalty equal to 3 months' interest on the outstanding balance at the time of refinancing, what would be the new monthly payment?
Furniture to Go is offering new customers an opportunity to defer their furniture purchase payments for...
Furniture to Go is offering new customers an opportunity to defer their furniture purchase payments for 3 months before their first payment is due. You purchased furniture costing $8,000 and want to take advantage of the 3 months’ deferral before making your first payment. You agree to pay the loan in monthly payments over a 3-year period after the deferral period. If the interest rate is 12% per year and interest accrue monthly during the 3 months’ deferral period. Draw...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $25,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.1%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $19,000 at a rate of 4.1%/year compounded monthly. Her bank is now charging 6.4%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have...
Kyle purchased a new TV and a DVD player on September 1, 2019, for $1,500 and...
Kyle purchased a new TV and a DVD player on September 1, 2019, for $1,500 and used her father's credit card to pay for it. His father agreed to allow Kyle to use the card based on her paying the balance within one year. The nominal interest rate on the card is 24% compounded monthly and requires equal monthly payments. The first payment was on October 1, 2019.After six months of paying for these purchases, Kyle decided, on March 1,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT