Question

When you purchased your? car, you took out a? five-year annual-payment loan with an interest rate of 5.7% per year. The annual payment on the car is $4,900.

You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following? scenarios?

**a.**You have owned the car for one year? (so
there are four years left on the? loan)?

**b.** You have owned the car for four years? (so
there is one year left on the? loan)?

2. Your grandmother has been putting $5,000 into a savings account on every birthday since your first? (that is, when you turned? one). The account pays an interest rate of 9%.

How much money will be in the account immediately after your grandmother makes the deposit on your 18th birthday

Answer #1

1) Using excel sheet below

a) Pay off after one year = 17096.31

b)Pay off after four years = 4635.76

Formulas | PMT FUNCTION= PMT(0.55%,360,570,000) | InterestPaid = Interest rate per period * beginning balance | Beginning balance - Interest Period | Ending Balance = Beginning Balance - Principal Paid | |

Payment No | Beginning balance | Payment Amount | Interest Paid | Principal Paid | Ending Balance |

1 | 20,810.13 | $4,900.00 | 1186.18 | $3,713.82 | $17,096.31 |

2 | 17,096.31 | $4,900.00 | 974.49 | $3,925.51 | $13,170.80 |

3 | 13,170.80 | $4,900.00 | 750.74 | $4,149.26 | $9,021.53 |

4 | 9,021.53 | $4,900.00 | 514.23 | $4,385.77 | $4,635.76 |

5 | 4,635.76 | $4,900.00 | 264.24 | $4,635.76 | ($0.00) |

2)Amount of money deposited by grandmother till 18th birthday =
money deposited on birthday + FV of 17 annuities of $5000 = 5000 +
5000 *[(1+r)^{n}-1]/r = 5000 + 5000*[(1+9%)-1]/9% =5000+
184868.82 = 189868.20

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9%per year. The
annual payment on the car is $4,700.
You have just made a payment and have now decided to pay off the
loan by repaying the outstanding balance. What is the payoff amount
for the following scenarios?
a.You have owned the car for one year (so there are four years
left on the loan)?
b. You have owned the car for...

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9 % per year. The
annual payment on the car is $ 5,100. You have just made a payment
and have now decided to pay off the loan by repaying the
outstanding balance. What is the payoff amount for the following
scenarios? a. You have owned the car for one year (so there are
four years left on the loan)? b. You have...

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9% per year. The
annual payment on the car is $4,800. You have just made a payment
and have now decided to pay off the loan by repaying the
outstanding balance. What is the payoff amount for the following
scenarios? a. You have owned the car for one year (so there are
four years left on the loan)? b. You have owned the...

1. When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 6% per year. The
annual payment on the car is $5,000. You have just made a payment
and have now decided to pay off the loan by repaying the
outstanding balance. What is the payoff amount if have owned the
car for four years (so there is one year left on the loan)?
2.Suppose you receive $100 at the end of each...

When you purchased your house, you took out a 30-year
annual-payment mortgage with an interest rate of 10% per year. The
annual payment on the mortgage is $14,909. You have just made a
payment and have now decided to pay the mortgage off by repaying
the outstanding balance.
a. What is the payoff amount if you have lived in the house for
18 years (so there are 12 years left on the mortgage)?
b. What is the payoff amount if...

8.
When you purchased your house, you took out a 30-year
annual-payment mortgage with an interest rate of 10 % per year. The
annual payment on the mortgage is $ 10,918. You have just made a
payment and have now decided to pay the mortgage off by repaying
the outstanding balance.
a. What is the payoff amount if you have lived in the house for
10 years (so there are 20 years left on the mortgage)?
b. What is the...

1. You receive a $5 comma 000 check from your grandparents for
graduation. You decide to save it toward a down payment on a house.
You invest it earning 6% per year and you think you will need to
have $10 comma 000 saved for the down payment. How long will it be
before the $5 comma 000 has grown to $10 comma 000 ? To double
the money you received from your grandparents, it will take
nothing years. (Round...

Angela Montery has a five-year car loan for a Jeep Wrangler at
an annual interest rate of 6.1% and a monthly payment of $605.50.
After 3 years, Angela decides to purchase a new car. What is the
payoff on Angela's loan? (Round your answer to two decimal
places.)

angela Montery has a five-year car loan for a jeep wrangler at an
annual interest rate of 6.3% and a monthly payment of $605.50.
After 3 years, Angela decides to purchase a new car. What is the
payoff on angelas loan? (round answer to two decimals)

(B-8) Angela Montery has a five-year car loan
for a Jeep Wrangler at an annual interest rate of 6.9% and a
monthly payment of $599.50. After 3 years, Angela decides to
purchase a new car. What is the payoff on Angela's loan?
(C-9) You receive a 10-year subsidized student
loan of $11,000 at an annual interest rate of 5%. What are your
monthly loan payments for this loan when you graduate?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 7 minutes ago

asked 17 minutes ago

asked 17 minutes ago

asked 24 minutes ago

asked 24 minutes ago

asked 30 minutes ago

asked 39 minutes ago

asked 51 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago