Question

A bank recently loaned you $14,015.00 to buy a car. The loan is for 4 years in is fully amortized. The nominal rate on the loan is 11%, and payments are made at the end of each month. What will be the remaining balance on the loan after you make payment number 25?

Answer #1

Step 1 : | EMI = [P x R x (1+R)^N]/[(1+R)^N-1] | ||||

Where, | |||||

EMI= Equal Monthly Payment | |||||

P= Loan Amount | |||||

R= Interest rate per period =11%/12 =0.9166667% | |||||

N= Number of periods =12*4 =48 | |||||

= [ $14015x0.0091666667 x (1+0.0091666667)^48]/[(1+0.0091666667)^48 -1] | |||||

= [ $128.4708338005( 1.0091666667 )^48] / [(1.0091666667 )^48 -1 | |||||

=$362.2249 | |||||

Step 2 : | Calcualtion of loan amount after 25th payment | ||||

Present Value Of An Annuity | |||||

= C*[1-(1+i)^-n]/i] | |||||

Where, | |||||

C= Cash Flow per period | |||||

i = interest rate per period =11% /12 =0.916667% | |||||

n=number of period =48-25 =23 | |||||

= $362.2249[ 1-(1+0.009166667)^-23 /0.009166667] | |||||

= $362.2249[ 1-(1.009166667)^-23 /0.009166667] | |||||

= $362.2249[ (0.1893) ] /0.009166667 | |||||

= $7,480.78 |
|||||

A bank recently loaned you $750,000 to buy a house. The loan is
for 30 years and is fully amortized. The nominal rate on the loan
is 3.5%, and payments are made at the end of each month. What will
be the remaining balance on the loan after you make the 130th
payment?
a. $548,125.07 b. $578,363.22 c. $545,890.73 d. $548,532.38 e.
$563,738.89

You
want to buy a car, and the bank will lend you $20,000. The loan
will be fully amortized over five years. Nominal interest rate will
be 6% with interest paid monthly. What will be the loan monthly
payment. How much of the second month payment will be
interest?

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 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%?

A commercial bank will loan you $30,981 for 8 years to buy a
car. The loan must be paid in equal monthly payments at the end of
the month. The annual interest rate on the loan is 16.41 percent of
the unpaid balance. What is the amount of the monthly payments?

You want to buy a car, and a local bank will lend you $15,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 11% with interest paid monthly.
What will be the monthly loan payment? Do not round intermediate
steps. Round your answer to the nearest cent.
$
What will be the loan's EAR? Do not round intermediate steps.
Round your answer to two decimal places.
%

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.

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 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.

You want to buy a car, and a local bank will lend you $25,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 9% with interest paid monthly. What
will be the monthly loan payment? Do not round intermediate steps.
Round your answer to the nearest cent. $
What will be the loan's EAR? Do not round intermediate steps.
Round your answer to two decimal places. %

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 27 minutes ago

asked 30 minutes ago

asked 30 minutes ago

asked 31 minutes ago

asked 32 minutes ago

asked 42 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago