Monika would like to buy a new car for $30’000. Her bank is willing to give...

Monika would like to buy a new car for $30’000. Her bank is willing to give her a

loan for the entire amount. The interest on the loan is 5% APY (Annual Percentage

Yield). Loan’s duration is 2 years. What equal monthly payment will Monika have to

pay to the bank for the next 2 years to completely reimburse the loan?

Solutions

Expert Solution

ekkarill92 answered 3 months ago

Next > < Previous

Related Solutions

You would like to buy yourself a fabulous new car. You have $50,000 but the car...

You would like to buy yourself a fabulous new car. You have $50,000 but the car costs $68,500. If you can earn 9% interest on a two year investment, how much would you have to invest today to buy the car in two year? Do you have enough? Assume the price of the car will remain the same. N = I = PV = PMT = FV = P/Y =

You would like to buy a new car that costs $25,000. The dealer offers you a...

You would like to buy a new car that costs $25,000. The dealer offers you a 3-year loan at an 8% interest rate, and because that rate is higher than market rates they offer to lower the price by $2,000. Assuming you make the required payment, should you accept his offer or seek alternative financing at the 3% rate?

Jessie just inherited $33,715.57 and would like to use it to buy a new car. His...

Jessie just inherited $33,715.57 and would like to use it to buy a new car. His parents would like him to use the money for college which Jessie will start in 10 years. His parents expect that his college will cost $17,000.00 per year for 4 years (tuition is due at the end of the year). The interest rate on the savings is 6.00%. 1) How much money will Jessie need for college when he starts in 10 years? 2)...

Susan wants to buy a house for $200,000. US Bank will give her the loan at...

Susan wants to buy a house for $200,000. US Bank will give her the loan at 3.5% for 30 years if she puts 20% down and Dacotah Bank will give her the loan at 3.8% for 30 years if she puts 10% down. There are NO other options. (15 PTS) a. Which loan should she sign up for? Pick one, no explanation needed. What is her monthly payment? (5 PTS) b. After 5 years, Susan is approached by a philanthropic...

Susan wants to buy a house for $200,000. US Bank will give her the loan at...

Susan wants to buy a house for $200,000. US Bank will give her the loan at 3.5% for 30 years if she puts 20% down and Dacotah Bank will give her the loan at 3.8% for 30 years if she puts 10% down. There are NO other options. (15 PTS) a-Which loan should she sign up for? Pick one, no explanation needed. What is her monthly payment? (5 PTS) b-After 5 years, Susan is approached by a philanthropic group known...

You would like to buy Tesla Model 3 car. The car loan requires payments of $600...

You would like to buy Tesla Model 3 car. The car loan requires payments of $600 per month for the first year and payments of $800 per month during the second year and also payments of 1,200 per month during the third year. The APR is 24% and payments begin in one month. What is the present value of this 3-year loan?

You wish to buy a car in 2.5 years and would like to start saving now...

You wish to buy a car in 2.5 years and would like to start saving now for the down payment. Figure a 15 % down payment. Target price will be $65000. You currently have the ability to earn an after tax rate of 9.5% on investments. When you purchase the car you plan to finance it at 2.9% for 4 years. How much will you be financing when the time comes? How do you find that amount? What calculation will...

Daneen has borrowed $6000 from her bank to buy a new machine for her business. She...

Daneen has borrowed $6000 from her bank to buy a new machine for her business. She has promised to make payments of $2000 after two years, $2500 after three years, and a final payment after five years. What is the size of the last payment, if interest is 8% compounded semiannually? show caculation by BAII plus CAlculator.You are encouraged to draw the timelines for yourself to help you with setting up the logic of how to solve the problem.

Ann would like to buy a house. It costs $2,500,000. Her down payment will be $50,000....

Ann would like to buy a house. It costs $2,500,000. Her down payment will be $50,000. She will take out a mortgage for the remainder. It will be a 30 year, fully amortizing, FRM, with constant monthly payments and monthly compounding. The annual interest rate is 4.50%. She will pay $5,000 in closing costs at origination. She will also pay 1.75% of the balance in buy-down points at origination. Note: the home is bought and the loan is taken in...

The bank has agreed to give you a mortgage for $400,000 to buy a new house....

The bank has agreed to give you a mortgage for $400,000 to buy a new house. Current mortgage rates have an APR of 4% compounded semi-annually for a term of 25 years. How much interest will you pay in total over the life of the loan? Select one: a. $121,433.25 b. $143,645.25 c. $231,224.25 d. $237,378.25 e. None of the above.

Subjects