Question

In: Finance

Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid...

Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid is closest to:

   A.   $32,646.08.

    B.   $3,901.08.

    C.   $7,375.91.

Solutions

Expert Solution

Total interest paid = Principal * Rate * Time

Total interest paid = $28,745 * 0.05125 * 5

Total interest paid = $7,365.91


Related Solutions

Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid...
Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid is closest to: A. $7,375.91. B. $3,901.08. C. $32,646.08.
You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate...
You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate is 4.46%, what is your monthly payment?
A car loan is taken for $13,000 to be paid back in 5 years, with monthly...
A car loan is taken for $13,000 to be paid back in 5 years, with monthly payments of $495. What nominal annual interest rate is being charged in this loan? 1) 27.42% 2) 42.26% 3) 39.00% 4) 2.29%
You have a loan for $200,000 at 5% interest over 15 years. In the eighth year...
You have a loan for $200,000 at 5% interest over 15 years. In the eighth year you pay off $5000 a)If your payment doesn't change, how much longer until the loan is paid off? b)if the loan re-amortized, or the maturity date stays the same, what would the new payment be?
You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly.
LOAN AMORTIZATION AND EARYou want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly.What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent.$  What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places.%
Loan 1: Amortize a $35,000 car loan at 4.5% over 5 years. How much is the...
Loan 1: Amortize a $35,000 car loan at 4.5% over 5 years. How much is the monthly payment? How much will the borrower pay in total interest?
If you accept a car loan of $20,000 for 5 years at an interest rate of...
If you accept a car loan of $20,000 for 5 years at an interest rate of 3%, what is the monthly payment?
You purchase a car for 10,000 The car loan is financed with a 5% per year,...
You purchase a car for 10,000 The car loan is financed with a 5% per year, 5 year loan with annyual payments starting at time 1 (1 year from today) through time 5 Each payment reduces the principal by a certain amount until the loan is completely paid off. What is the interest component of the first payment? (I am allowed to use the TI-34 and BAII Plus calculators)
Corporation issues $400,000, 10%, five-year bonds at 95. The total interest expense over the life of...
Corporation issues $400,000, 10%, five-year bonds at 95. The total interest expense over the life of the bonds is? with explanation
You are currently maintaining a conventional 30-year mortgage loan with your bank and the annual interest...
You are currently maintaining a conventional 30-year mortgage loan with your bank and the annual interest rate is 8%. Your bank manager now offers you a 30-year adjustable rate mortgage (ARM) at 2% but the rate will be adjusted once each year. Evaluate your current mortgage and the new option in terms of the following: Risk that the monthly payment will change over the next 30 years, and, interest rate risk. Explain your understanding on the risk involved in this...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT