Question

Hank purchased a $24,500 car two years ago using a 9 percent, 5-year loan. He has...

Hank purchased a $24,500 car two years ago using a 9 percent, 5-year loan. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What’s the minimum price Hank would need to receive for his car? (Round the loan payment to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hank purchased a car for $27,500 two years ago using a 5-year loan with an interest...
Hank purchased a car for $27,500 two years ago using a 5-year loan with an interest rate of 9.0 percent. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What’s the minimum price Hank would need to receive for his car? Calculate his monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining...
Rachel purchased a $17,500 car three years ago using a 10 percent, 6-year loan. She has...
Rachel purchased a $17,500 car three years ago using a 10 percent, 6-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. First calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. What is the minimum price Rachel would need to receive for her car? (Round the loan...
1. Monica has decided that she wants to build enough retirement wealth that, if invested at...
1. Monica has decided that she wants to build enough retirement wealth that, if invested at 7 percent per year, will provide her with $3,000 monthly income for 30 years. To date, she has saved nothing, but she still has 20 years until she retires. How much money does she need to contribute per month to reach her goal? 2.Hank purchased a $20,000 car two years ago using an 8 percent, 5-year loan. He has decided that he would sell...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate of 6.1 % 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...
Joe secured a loan of $13,000 four years ago from a bank for use toward his...
Joe secured a loan of $13,000 four years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 15 years at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $...
My son recently purchased a new car that was priced at $28,000. He was given two...
My son recently purchased a new car that was priced at $28,000. He was given two purchase options. The first was a 0% loan for 48 months on the full purchase price. However, if he paid cash he would get a 10% discount on the car making the purchase price $25,200.      a) What is the loan payment if he takes the 0% loan?      b) Comparing the first option to the second option, what is the actual interest rate...
(Nonannual compounding using a calculator​) Jesse Pinkman is thinking about trading cars. He estimates he will...
(Nonannual compounding using a calculator​) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow ​$30,000 to pay for his new car. How large will​ Jesse's monthly car loan payment be if he can get a 7​-year (84 equal monthly​ payments) car loan from the​ university's credit union at an APR of 7.1 percent compounded​ monthly? ​ Jesse's monthly car loan payment will be ​$ ​(Round to the nearest​ cent.) (Compound annuity​) You plan on...
Rino just purchased his first car with a 7.5% 5 year mortgage loan of RM78,000. (a)...
Rino just purchased his first car with a 7.5% 5 year mortgage loan of RM78,000. (a) If he pays interest yearly and the total loan will be settled at the end of year 5, how much is his equal yearly payment for the sinking fund which earns 5.2% interest yearly compounding? Assume that the first payment to the fund make immediately. (b) Refer to part (a), if Rino did not pay interest to the lender for the whole tenure till...
Monthly loan payments  Personal Finance Problem  Tim Smith is shopping for a used luxury car. He...
Monthly loan payments  Personal Finance Problem  Tim Smith is shopping for a used luxury car. He has found one priced at $30,000. The dealer has told Tim that if he can come up with a down payment of 7,200​, the dealer will finance the balance of the price at a 8​% annual rate over 5 years ​(60 months).  ​(Hint: Use four decimal places for the monthly interest rate in all your​ calculations.) a.  Assuming that Tim accepts the​ dealer's offer,...
1. When you purchased your car, you took out a five-year annual-payment loan with an interest...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT