Question

You want to buy a new sports car from Muscle Motors for $86,000. The contract is in the form of a 72-month annuity due at an APR of 6.8 percent. What will your monthly payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer #1

Amount borrowed = $86,000

Annual interest rate = 6.80%

Monthly interest rate = 0.5667%

Period = 72 months

Payments are made in form the form of annuity due which means each payment is made at the beginning of each month.

Let monthly payment be $x

$86,000 = $x + $x/1.005667 + $x/1.005667^2 + … + $x/1.005667^70
+ $x/1.005667^71

$86,000 = $x * 1.005667 * (1 - (1/1.005667)^72) / 0.005667

$86,000 = $x * 59.319756

$x = $1,449.77

Monthly payment = $1,449.77

So, your monthly payment will be $1,449.77

You want to buy a new sports car from Muscle Motors for
$57,500. The contract is in the form of a 60-month annuity due at
an APR of 5.9 percent. What will your monthly payment be?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Monthly Payment= ______

You want to buy a new sports car from Muscle Motors for $59,000.
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A) $1,027.04 B) $986.77 C) $1,012.99 D) $956.56 E) $1,006.91

You want to buy a new sports car from Muscle Motors for
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You want to buy a new sports car from Muscle Motors for
$37,000. The contract is in the form of a 36-month annuity due at a
8.25 percent APR.
Required:
What will your monthly payment be?
rev: 09_17_2012
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What will your monthly payment be?
Multiple Choice
$739.26
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Answer these 2 separate questions:
1)
You want to buy a new sports car
from Muscle Motors for $36,000. The contract is in the form of a
72-month annuity due at a 6.50 percent APR.
Required:
What will your monthly payment be?
2)
You are looking at a one-year loan of $15,000. The interest rate
is quoted as 9 percent plus 3 points. A pointon a loan is
simply 1 percent (one percentage point) of the loan amount. Quotes...

You want to buy a new sports coupe for $75,500, and the finance
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intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. What is the effective annual rate on this loan? (Do
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b. $1255.29
c. $1450.87
d. $1,373.92
e. None of the above
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How much could he withdraw...

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You want to buy a new sports coupe for $43,685, and the finance
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(Do not include the dollar sign ($). Enter rounded answer as
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calculations. Round your answer to 2 decimal places (e.g.,
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