Question

In: Finance

Ivan Romanchuk is getting a car loan for $25,300 with a term of 4 years at...

Ivan Romanchuk is getting a car loan for $25,300 with a term of 4 years at a rate of 4.15%, His monthly payments will be closest to:

	A.	$582.88.
	B.	$572.95.
	C.	$1,223.75.

Expert Solution

Given information

1) loan amount =$25,300

3) term of loan = 4 years

but it is provided that loan will be paid in equal monthly installments

so total loan periods = 4 *12 months

= 48 periods

3) Rate of interest = 4.15%

per month interest rate = 4.15%/12

=0.345833%

= 0.00345833 per month

and answer is option B: $572.95

note:; Here PVAF means prrsent value annuity factor..

there will be equal installments repayments for loan ..so we have to calculate monthly installment in annuity method.

jeff jeffy answered 2 years ago

Ivan Romanchuk is getting a car loan for $28,400 with a term of 5 years at a rate of 4.60%, His monthly payments will be closest to:

Ivan Romanchuk is getting a car loan for $28,400 with a term of 5 years at a rate of 4.60%, His monthly payments will be closest to: A. $540.61. B. $1,400.68. C. $530.75.

3) You have issued a term loan to a borrower at 4% for 4 years on...

3) You have issued a term loan to a borrower at 4% for 4 years on $25m. They are ecstatic because they (and you) believe interest rates will go up in that 4-year period, but you needed to do the loan because you want the customer’s business. To save your Spread, you decide to buy a $25m notional principal interest rate swap for 4% Fixed to receive SOFR+2%. Assume SOFR for the next 4 years are expected to be 4.25%,...

Susan is able to pay $300 a month for 4 years on a car loan. If...

Susan is able to pay $300 a month for 4 years on a car loan. If the interest rate is 4.8% per year, how much can she afford to borrow to buy a car? Group of answer choices $13,078.27 $12,824.95 $15,840.49 $15,470.38

You borrowed $20,000 to purchase a new car. The loan was for 4 years at a...

You borrowed $20,000 to purchase a new car. The loan was for 4 years at a nominal rate of 6% per year compunded monthly. You have been making equal monthly payments on the loan. You just made your 18th payment. A) What is your monthly payment B) How much of your first payment was interest? How much of your current (18th) payment is interest? C) How much of the loan has been repaid immediately after the 18th payment? D) Based...

A person amortizes a loan of $17000 for a car with a 5 years loan at...

A person amortizes a loan of $17000 for a car with a 5 years loan at the rate of 6.5% compounded monthly. (a) Find the montly payments. The payments are of $ . (b) Find the total interest charges. The interest is $ . (c) Find the principal remaining after 2 years. The principal remaining is of $ .

Rachel purchased a car for $21,500 three years ago using a 4-year loan with an interest...

Rachel purchased a car for $21,500 three years ago using a 4-year loan with an interest rate of 9.0 percent. 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. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the...

1. You get a $15,000 car loan for 4 years at 6.75% interest. The lender charges...

1. You get a $15,000 car loan for 4 years at 6.75% interest. The lender charges $250 for an origination fee (which is added to your loan amount). What is your APR? 2. You buy furniture for $2,500. You pay $300 down and the retailer finances the remainder with 36 monthly payments of $80. Calculate your APR.

Rachel purchased a car for $17,000 three years ago using a 4-year loan with an interest...

Rachel purchased a car for $17,000 three years ago using a 4-year loan with an interest rate of 9.0 percent. 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. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the...

Rachel purchased a car for $25,000 three years ago using a 4-year loan with an interest...

Rachel purchased a car for $25,000 three years ago using a 4-year loan with an interest rate of 10.8 percent. 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. What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments , then use those payments and the remaining time left to compute the present value (called balance) of...

The average student loan debt for college graduates is $25,300. Suppose that that distribution is normal...

The average student loan debt for college graduates is $25,300. Suppose that that distribution is normal and that the standard deviation is $11,250. Let X = the student loan debt of a randomly selected college graduate. Round all probabilities to 4 decimal places and all dollar answers to the nearest dollar. a. What is the distribution of X? X ~ N(,) b Find the probability that the college graduate has between $7,500 and $18,100 in student loan debt. c. The...