Question

In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly...

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 is the payoff amount of the loan?

Homework Answers

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
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly...
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...
Katie plans to purchase a new car. She decides to borrow $25,000 from her friend at...
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...
You need to borrow $18,500 to buy a truck. The current loan rate is 9.5% compounded...
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 borrow 500000 to buy a house. APR is 5% compounded daily. Your payment...
You want to borrow 500000 to buy a house. APR is 5% compounded daily. Your payment schedule is 30 years with equal monthly payments. Loan is fully paid when last payment is made. How much will be your monthly payment?
you borrow $10,000 for four years to buy a car. The monthly loan payment is $237.15....
you borrow $10,000 for four years to buy a car. The monthly loan payment is $237.15. If you draw a line, what is the cash flow at time 0?
You need a new car. You can either lease or buy the car for 355 000...
You need a new car. You can either lease or buy the car for 355 000 SEK. In both cases you expect to use the car for 5 years. It will have a residual value of 120 000 SEK after 5 years. You can borrow at a rate of 2.5% APR with monthly compounding. (a) In case you buy the car you will take an annuity loan over 5 year at a borrowing rate of ${col}%. What will be your...
You decide finance a $12,000 car with an annual rate of 3% compounded monthly for 4...
You decide finance a $12,000 car with an annual rate of 3% compounded monthly for 4 years. What will your payments be? How much will you pay over the life of the loan?
You want to buy a $16,000 car. The company is offering a 7.9% interest rate for...
You want to buy a $16,000 car. The company is offering a 7.9% interest rate for 5 years. Round your answer to the nearest cent as needed. a) What will your monthly payments be? $ b) How much interest will you pay over the entire loan period? $
A car company offering three purchase to buy new car plan A : $5000 cash immediately...
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 ?
You are borrowing $5,230 to buy a car. The terms of the loan call for monthly...
You are borrowing $5,230 to buy a car. The terms of the loan call for monthly payments for 5 years at a 5.50 percent interest compounded monthly. What is the amount of each payment? a.$75.93 b. $95.67 c. $99.90 d. $97.16 e. $75.38