Question

You go to your local bank to borrow $5,680 to buy a used BMW. Your loan will require monthly payments for 4 years at 6.00 percent interest compounded monthly.

What is the amount of your monthly loan payment?

Answer #1

Monthly payment | = | [P × R × (1+R)^N ] / [(1+R)^N -1] | |

Using the formula: | |||

Loan amount | P | $ 6,840 | |

Rate of interest per period: | |||

Annual rate of interest | 6.000% | ||

Frequency of payment | = | Once in 1 month period | |

Numer of payments in a year | = | 12/1 = | 12 |

Rate of interest per period | R | 0.06 /12 = | 0.5000% |

Total number of payments: | |||

Frequency of payment | = | Once in 1 month period | |

Number of years of loan repayment | = | 4 | |

Total number of payments | N | 4 × 12 = | 48 |

Period payment using the formula | = | [ 6840 × 0.005 × (1+0.005)^48] / [(1+0.005 ^48 -1] | |

Monthly payment | = | $ 160.64 |

Monthly payment is $160.64

please rate.

You want to buy a car, and a local bank will lend you $40,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 4% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.

2. Suppose you borrow $20,000 at an 18 percent simple interest
but must repay your loan in 12 equal monthly payments.
a. Find the APR for this loan.
b. What is the corresponding EAR?
3. Suppose you deposit $20,000 in a savings account. After 210
days, you withdraw your funds. If the bank paid you $340 in
interest for the 210-day period, what is your APY?
4. Suppose that the house of your dreams costs $1,200,000. You
manage to scrap...

You want to buy a car, and a local bank will lend you $20,000.
The loan will be paid off over 5 years with equal monthly
payment.
Q: If the nominal interest rate of the loan is quoted as 6% with
semiannual compounding assumption, what is your monthly
payment?

You want to buy a car, and a local bank will lend you $35,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 10% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.

You need to borrow $18,500 to buy a truck. The current loan rate
is 9.5% compounded monthly and you want to pay the loan off in
equal monthly payments over five years. What is the size of your
monthly payment?

You want to buy a car, and a local bank will lend you $30,000.
The loan will be fully amortized over 3 years (60 months), and the
nominal interest rate will be 5.25% with interest paid monthly.
What will be the monthly loan payment? What will be the
loan’s EAR?

You want to buy a house and will need to borrow $250,000. The
interest rate on your loan is 5.83 percent compounded monthly and
the loan is for 20 years. What are your monthly mortgage
payments?

You want to buy a car, and a local bank will lend you $10,000.
The loan would be fully amortized over 3 years (36 months), and the
nominal interest rate would be 15%, with interest paid monthly.
What is the monthly loan payment? What is the loan's EFF%?

You want to buy a car, and a local bank will lend you $35,000.
The loan would be fully amortized over 5 years (60 months), and the
nominal interest rate would be 15%, with interest paid monthly.
What is the monthly loan payment? Do not round intermediate
calculations. Round your answer to the nearest cent.

In order to buy a car, you borrow $16,000 from a friend at
7%/year compounded monthly for 4 years. You plan to repay the loan
with 48 equal monthly payments. The monthly payments are
$383.14.
a) How much interest is in the 23rd payment?
b) what is the remaining balance after the 37th payment?
c) Three and a half years into the loan, you decide to pay it
off. You have not made the payment due at that time. What...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 6 minutes ago

asked 8 minutes ago

asked 8 minutes ago

asked 14 minutes ago

asked 20 minutes ago

asked 27 minutes ago

asked 28 minutes ago

asked 31 minutes ago

asked 32 minutes ago

asked 48 minutes ago

asked 54 minutes ago