Question

Kerri James is considering the purchase of a car. She wants to buy the new VW Beetle, which will cost her $17,600. She will finance 90% of the purchase price (i.e., make a 10% down payment) at an interest rate of 5.9 percent, with monthly payments over three years. How much money will she still owe on the loan at the end of one year(that is, immediately after she makes the 12th payment on her car loan)?

Answer #1

Computation of Monthly Payment

Monthly Payment = Loan Amount / PVAF ( 0.49%,36)

Monthly Payment = 17600 * 0.90 / 32.92

**Monthly Payment = $481.17**

Cumulative Interest paid till the 12th payment = "=CUMIPMT(0.49%,36,15840,1,12,0)" --Excel Funtion

**Cumulative Interest paid till the 12th payment =
$801.52**

**Total payments Made in Year 1 = Monthly Payment * 12 =
481.17 * 12 = $5774.04**

**Total Principal repaid in year 1 = $5774.04 - 801.52 =
$4972.52**

Loan Still Owe after one year = Loan Amount - Principal Repaid

Loan Still Owe after one year = 17600 * .90 - 4972.52

**Loan Still Owe after one year = $10867.49**

Kerri James is considering the purchase of a car, which will
cost her $24,600. She will borrow the entire purchase price and
make monthly payments over the next six years. The first payment is
due next month and the annual interest rate is 3.00%. She will owe
$____ on the car immediately following the 18th payment.
A. 18,858.19
B. 18,531.57
C. 20,757.33
D. 19,184.00
E. 23,258.56

a)Maria wants to buy a car. She has saved $2,500 for a down
payment, and she can afford payments of $250 per month for 5 years.
Her credit union has offered her an auto loan that charges 4.8% per
year compounded monthly for 5 years. What is the largest loan she
can afford? What is the most expensive car she can afford?
b) Find the interest rate needed for an investment of $5100 to
triple in 6 years if interest...

Jennifer wants to buy a car, and she has found a deal that
requires no money down (i.e., no cash payment up-front). If she can
afford to pay $800 per month and the
monthly interest rate is 1% per month for a
3-years car loan.
(Hint: 1. be careful about the payment
period and periodic interest rate. 2. If you buy the car, you can
get the car now, and pay the cost (interests and principal) for
12*3 months. Not...

Katie plans to purchase a new car. She decides to borrow
$25,000 from her friend at 8% per year compounded monthly for 4
years. She plans to repay the loan with 48 equal monthly payments.
How much is the monthly payment?
How much interest is in the 23rd payment?
What is the remaining balance immediately after she made her
37th payment?
Later, she became able to pay off the loan at the end of the
30th month. She has not...

Your friend wants to purchase a new TESLA car for $65,000. All
wheel drive, Long range battery, and dual motors. He has no
savings, so he needs to finance the entire purchase amount. With no
down payment, the interest rate on the loan is 10 % and the
maturity of the loan is 6 years. His monthly payments will be
$1673.33. He earns $1600.00 a month. He has a credit card limit of
$13,000 and an interest rate of 12%....

Lupé made a down payment of $8000 toward the purchase of a new
car. To pay the balance of the purchase price, she has secured a
loan from her bank at the rate of 5%/year compounded monthly. Under
the terms of her finance agreement she is required to make payments
of $440/month for 36 months.
What is the cash price of the car? (Round your answer to the
nearest cent.)

A car company offering three purchase to buy new car
plan A : $5000 cash immediately
plan B : $1500 down and 36 monthly payment of $116.25
plan C : $1000 DOWN AND 48 MONTHLY PAYMENTS OF $V 120.50
IF You expect to keep the car for five years and the interest
rate of the money is 18% compounded monthly
which payment plan should you choose ?

Paula is considering the purchase of a new car. She has narrowed
her search to two cars that are equally appealing to her. Car A
costs $25,000, and Car B costs $25,500. The manufacturer of Car A
is offering 0% financing for 48 months with zero down, while the
manufacturer of Car B is offering a rebate of $2000 at the time of
purchase plus financing at the rate of 3%/year compounded monthly
over 48 months with zero down. If...

Paula is considering the purchase of a new car. She has narrowed
her search to two cars that are equally appealing to her. Car
A costs $23,000, and Car B costs $23,200. The
manufacturer of Car A is offering 0% financing for 48
months with zero down, while the manufacturer of Car B is
offering a rebate of $2000 at the time of purchase plus financing
at the rate of 3%/year compounded monthly over 48 months with zero
down. If...

Alexis want to buy a house in 5 years. She wants to save $75,000
over the next five years for a down payment. If she can earn an
annual rate of 9% on her savings, how much must she deposit in
equal payments at the end of each month for the next five years to
reach her goal?
A)
$1,250
B)
$765.87
C)
$994.38
D) $8,420.13
Alexis is ready to buy her house. She will purchase the $450,000
house with...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 16 minutes ago

asked 37 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago