Question

You've just bought a new​ flat-screen TV for $3,000 and the store you bought it from...

You've just bought a new​ flat-screen TV for $3,000 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 12 percent compounded monthly. If you take the financing and make monthly payments of $100​, how long will it take to pay off the​ loan? How much will you pay in interest over the life of the​ loan?

a. The number of years it will take to pay off the loan is

Homework Answers

Answer #1

Ans:- we will use the NPER function of excel to find the number of years it will take to pay off the loan.

Rate=12%/12, Pmt=$100, PV=-$3000, FV=0

Total Interest paid over the life the entire life of the loan is calculated by Total Payment done - Loan amount

Total Payment done =Monthly payment * Number of payments done.

Note:- If this answer helps you pls give thumbs up.

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
You've just bought a new​ flat-screen TV for 4,000 and the store you bought it from...
You've just bought a new​ flat-screen TV for 4,000 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 14 percent compounded monthly. If you take the financing and make monthly payments of ​$120, how long will it take to pay off the​ loan? How much will you pay in interest over the life of the​ loan?
You've just bought a new​ flat-screen TV for ​$2,800 and the store you bought it from...
You've just bought a new​ flat-screen TV for ​$2,800 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 12 percent compounded monthly. If you take the financing and make monthly payments of ​$90​, how long will it take to pay off the​ loan? How much will you pay in interest over the life of the​ loan?
You've just bought a new​ flat-screen TV for ​$4,000 and the store you bought it from...
You've just bought a new​ flat-screen TV for ​$4,000 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 13 percent compounded monthly. If you take the financing and make monthly payments of ​$150, how long will it take to pay off the​ loan? How much will you pay in interest over the life of the​ loan? A. The number of loan years is: B. How much will you pay...
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?
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year...
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,800,000 purchase price. The monthly payment on this loan will be $17,000. a. What is the APR on this loan? b. What is the EAR?
Bucky Bavasi just bought a new TV that cost $1,500. He plans to finance the purchase...
Bucky Bavasi just bought a new TV that cost $1,500. He plans to finance the purchase with his new credit card which has an 18% nominal interest rate. The minimum payment on the card is $24.16 per month. If he makes the minimum payment and makes no other charges, how many months will it take before he pays off the card?
You have just received an offer in the mail from Friendly Loans. The company is offering...
You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $3,250 with low monthly payments of $75 per month. If the interest rate on the loan is an APR of 14.9 percent compounded monthly, how long will it take for you to pay off the loan? Multiple Choice 67.40 months 62.58 months 43.33 months 14.47 months 58.41 months
Barry has bought a new car and requires a loan of 12000 to pay for it....
Barry has bought a new car and requires a loan of 12000 to pay for it. The car dealer offers Barry two alternatives on the loan: a) Monthly payments for 3 years, starting one month after purchase with an annual interest rate of 12% compounded monthly, or b) Monthly payments for 4 years, also staring one month after purchase, with annual interest rate 15%, compounded monthly. Find Barry's monthly payment and the total amount paid over the course of the...
You just bought a new car for $27,718. The car loan contract specifies that the interest...
You just bought a new car for $27,718. The car loan contract specifies that the interest rate on your car loan is 4.5% APR compounded monthly, your down-payment is $2,718, and the term for the loan is 5 years. You must make monthly payments on your loan starting in one month's time. What is the monthly payment?
Camerin wants a new big screen TV and home theater surround sound​ system, which he thinks...
Camerin wants a new big screen TV and home theater surround sound​ system, which he thinks will cost $4, 880. The store will finance up to ​$4, 380 for 2 years at a 18.75percent interest rate. Assuming Camerin accepts the​ store's financing, what will his monthly payment​ be? If he increases his down payment to​ $1,000, how much will his monthly payment​ be? Assuming Camerin accepts the​ store's financing, his monthly payment will be ​$_________. ​(Round to the nearest​ cent.)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT