Question
In: Finance
You wish to buy a speed boat that costs $45,000. You will putdown 10% down...
You wish to buy a speed boat that costs $45,000. You will put down 10% down payment and finance the remaining cost of the boat with a 6-year fully amortized loan at an annual rate of 12%. If you want to make equal quarterly payments with the first payment three months from now, how much will your quarterly payment be?
Solutions
Expert Solution
- Loan Amount = Boat Cost*(1- % of Downpayment)
Loan Amount = $45,000*(1-0.10)
Loan Amount = $40,500
Calculating the Quarterly Loan payment:-
Where, P = Loan amount = $40,500
r = Periodic Interest rate = 12%/4 = 3%
n= no of periods = 6 years*4 = 24
Quarterly payments = $2391.42
jeff jeffy answered 2 years agoRelated Solutions
You wish to buy a speed boat that costs $45,000. You will put down 10% down...
You wish to buy a speed boat that costs $45,000. You will put
down 10% down payment and finance the remaining cost of the boat
with a 6-year fully amortized loan at an annual rate of 12%. If you
want to make equal quarterly payments with the first payment three
months from now, how much will your quarterly payment be?
View keyboard shortcuts
You wish to buy a house today for $350,000. You plan to put 10% down and...
You wish to buy a house today for $350,000. You plan to put 10%
down and finance the rest at 5.20%
p.a. for thirty years. You will make
equal monthly payments of $_______.
You wish to buy a house today for $350,000. You plan to put 10% down and...
You wish to buy a house today for $350,000. You plan to put 10%
down and finance the rest at 5.20%
p.a. for thirty years. You will make
equal monthly payments of $_______.
you plan to buy a boat for $10,000 and the terms are 20% down payment with...
you plan to buy a boat for $10,000 and the terms are 20% down
payment with the balance to be paid over 40 months in equal monthly
installments. If the first payment is one month from today and the
interest rate is 24% per year, what is the value of each
installment? (round to the nearest dollar)
1. Suppose you wish to buy a house for $500,000. You make a 25% down payment...
1. Suppose you wish to buy a house for $500,000. You make a 25%
down payment and borrow the rest at an interest rate of 6% for 30
years.
(a) What is your annual repayment?
(b) Repeat the above assuming a mortgage term of 25 years.
2. Suppose you borrow $20,000 to buy a car. The interest rate is
11% and the loan is for 8 years.
(a) What is your annual repayment?
(b) What is the remaining balance after...
1. Suppose you wish to buy a house for $500,000. You make a 25% down payment...
1. Suppose you wish to buy a house for $500,000. You make a 25%
down payment and borrow the rest at an interest rate of 6% for 30
years.
(a) What is your annual repayment?
(b) Repeat the above assuming a mortgage term of 25 years.
2. Suppose you borrow $20,000 to buy a car. The interest rate is
11% and the loan is for 8 years.
(a) What is your annual repayment?
(b) What is the remaining balance after...
You want to buy a house that costs $210,000. You have $21,000 for a down payment,...
You want to buy a house that costs $210,000. You have $21,000
for a down payment, but your credit is such that mortgage companies
will not lend you the required $189,000. However, the realtor
persuades the seller to take a $189,000 mortgage (called a seller
take-back mortgage) at a rate of 5%, provided the loan is paid off
in full in 3 years. You expect to inherit $210,000 in 3 years, but
right now all you have is $21,000, and...
You want to buy a house that costs $180,000. You have $18,000 for a down payment,...
You want to buy a house that costs $180,000. You have $18,000
for a down payment, but your credit is such that mortage companies
will not lend you the required $160,000. However, the realtor
persuades the seller to take a $160,000 mortage (called a seller
take-back mortage) at a rate of 7%, provided the loan is paid off
in full in 3 years. You expected to inherit $180,000 in 3 years;
but right now all you have is $18,000, and...
You want to buy a house that costs $100,000. You have $10,000 for a down payment,...
You want to buy a house that costs $100,000. You have $10,000
for a down payment, but your credit is such that mortgage companies
will not lend you the required $90,000. However, the realtor
persuades the seller to take a $90,000 mortgage (called a seller
take-back mortgage) at a rate of 9%, provided the loan is paid off
in full in 3 years. You expect to inherit $100,000 in 3 years; but
right now all you have is $10,000, and...
You want to buy a house that costs $230,000. You have $23,000 for a down payment,...
You want to buy a house that costs $230,000. You have $23,000
for a down payment, but your credit is such that mortgage companies
will not lend you the required $207,000. However, the realtor
persuades the seller to take a $207,000 mortgage (called a seller
take-back mortgage) at a rate of 8%, provided the loan is paid off
in full in 3 years. You expect to inherit $230,000 in 3 years, but
right now all you have is $23,000, and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- I would like to integrate a bubble sort into this binary search in c ++ Thank...
- Answer the bottom in 1-2 paragraphs Classical conditioning is a learned behavior where previously neutral response...
- identify one intrapersonal relationship and evaluate its component.
- Using Python in vs code: The distribution of letters in a document has a distinctive and...
- Why is De Beers exploring the diamond reselling market? How does the creation of IIDV affect...
- programming in Python The body mass index (BMI) is calculated as a person’s weight (in lb)...
- 1. Show the steps in merging A and B into C where A= 8, 12, 19,...
ADVERTISEMENT