Question
In: Finance
You are financing a new car with a three-year loan at 10.5% annual nominal interest, compounded...
You are financing a new car with a three-year loan at 10.5% annual nominal interest, compounded monthly. The price of the car is $14,500. Your down payment is $1,500. What are your monthly payments at 10.5%? (Assume your payments start one month after the purchase, or at the end of the first period.)
Solutions
jeff jeffy answered 1 week agoRelated Solutions
You receive a $35,000 car loan at 6% nominal annual for 60 months. Interest is compounded...
You receive a $35,000 car loan at 6% nominal annual for 60
months. Interest is compounded daily and you make monthly payments.
How much PRINCIPLE do you pay on your 12th payment?
A loan of 11000 is made with interest at a nominal annual rate of 12% compounded...
A loan of 11000 is made with interest at a nominal annual rate
of 12% compounded monthly. The loan is to be repaid by 36 monthly
payments of 367.21 over 37 months, starting one month after the
loan is made, there being a payment at the end of every month but
one. At the end of which month is the missing payment?
For your reference, the answer is at the 17th month.
You receive a $25,000 car LEASE at 6% nominal annual for 3 years. Interest is compounded...
You receive a $25,000 car LEASE at 6% nominal annual for 3
years. Interest is compounded monthly and you make monthly
payments. Your Residual value at the end of your lease is $15,000.
Assume LEASE payments are made at the END of the month, (first
payment due end of first month). You can also get a LOAN for the
same terms (although you will pay off the entire car in 3
years).
Assume your MARR for investment is 4% annual...
You receive a $25,000 car LEASE at 6% nominal annual for 3 years. Interest is compounded...
You receive a $25,000 car LEASE at 6% nominal annual for 3
years. Interest is compounded monthly and you make monthly
payments. Your Residual value at the end of your lease is $15,000.
Assume LEASE payments are made at the END of the month, (first
payment due end of first month). You can also get a LOAN for the
same terms (although you will pay off the entire car in 3
years).
Assume your MARR for investment is 4% annual...
You receive a $35,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded...
You receive a $35,000 car LEASE at 6% nominal annual for 60
months. Interest is compounded daily and you make monthly payments.
Your Residual value at the end of your lease is $15,000. Assume
LEASE payments are made at the BEGINNING of the month, (first
payment due immediately). What is your monthly LEASE payment?
You receive a $35,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded...
You receive a $35,000 car LEASE at 6% nominal annual for 60
months. Interest is compounded daily and you make monthly payments.
Your Residual value at the end of your lease is $15,000. Assume
LEASE payments are made at the BEGINNING of the month, (first
payment due immediately). What is your monthly LEASE payment?
Please show work so I can compare my answer, I got an answer of
434.2 as of a first time. Thanks
The current nominal market interest rate for a four-year car loan is 8 percent per year....
The current nominal market interest rate for a four-year car
loan is 8 percent per year. At the time the loan is made the
anticipated annual rate of inflation over the four year period is 3
percent per year. If the actual rate of inflation over the four
year period turns out to be 5 percent per year then A. the real
rate of interest actually earned by the lender will be 5 percent
per year. B. the real rate...
You took a loan to buy a new car. The monthly interest rate on the loan...
You
took a loan to buy a new car. The monthly interest rate on the loan
is 1.5% and you have to pay $240 every month for 60 months
1)What is the Present value of the Cash flows if its an
ordinary annuity?
2)What is the future value of cash flows if its an ordinary
annuity?
3)What is the present value of the cash flows if its an
annuity due?
4)What is the future value of cash flows if its...
You plan to apply for a loan from Bank of America. The nominal annual interest rate...
You plan to apply for a loan from Bank of America. The nominal
annual interest rate for this loan is 13.89 percent, compounded
daily (with a 365-day year). What is the effective annual rate, or
EAR (annual percentage yield), of this loan?
If you take out a car loan for $35,000, will pay an annual interest rate of...
If you take out a car loan for $35,000, will pay an annual
interest rate of 4% on the loan, and make monthly payments of
$547.58, how many payments will you need to make? -What are you
solving for? -What is your answer?
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