Question

In: Advanced Math

1. Neema bought appliances costing ​$3775 at a store charging 6​% ​add-on interest. She made a...

1. Neema bought appliances costing ​$3775 at a store charging 6​% ​add-on interest. She made a $1000 down payment and agreed to monthly payments over four years. What percent of the original price tag total did the financing​ cost?

The financing cost was _____% of the original price tag total.

2. Use the​ add-on method of calculating interest to find the total interest and the monthly payment of a ​$650 loan for 14 months at 6.1​%.

The total interest is $____

3. How long​ (in years) will it take Michael Garbin to pay off a ​$7000 loan with monthly payments of ​$128.83 if the​ add-on interest rate is 6.1​%?

Michael Garbin would take ____ years to pay off a ​$7000 loan amount.

Solutions

Expert Solution

Colby Messinger answered 2 years ago
Next > < Previous

Related Solutions

Alexi's bought a home for $1,000,000 during year 1. She made a $200,000 down payment and...
Alexi's bought a home for $1,000,000 during year 1. She made a $200,000 down payment and financed the other $800,000. This home is her only residence. Assume that by year 10 her home had appreciated to $1,5000,000 and the balance on her mortgage was down to $600,000, interest rates had gone down and Alexis refinanced her home. She borrowed $1,000,000 and paid off her first mortgage. She used the remaining $400,000 for projects unrelated to her home. How much is...
Leah currently owes $12,000 to a friend who is charging her interest of 2.60% p.m. She...
Leah currently owes $12,000 to a friend who is charging her interest of 2.60% p.m. She is required to settle the loan with two equal payments, one today and the other in four months. Calculate the size of the payments using four months as the focal date
1.Find the interest rate on a loan charging $810 simple interest on a principal of $3750...
1.Find the interest rate on a loan charging $810 simple interest on a principal of $3750 after 6 years.​ 2.Find the term of the compound interest loan. (Round your answer to two decimal places.) 4.9% compounded quarterly to obtain $8600 from a principal of $2000.
Assume Anderson’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $37,000....
Assume Anderson’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $37,000. If the company was charged $790 in transportation cost by National Trucking, immediately returned goods to American Wholesaling costing $2,600, and then took advantage of American Wholesaling’s 2/10, n/30 purchase discount. Prepare journal entries to record the inventory transactions, assuming Anderson’s uses a perpetual inventory system
Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing...
Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $1,610. The company paid $104 in transportation cost to National Trucking to deliver the merchandise to Bella Donna. Bella Donna immediately returned goods to American Wholesaling costing $540, and then took advantage of American Wholesaling’s 1/10, n/30 purchase discount. When Bella Donna pays American Wholesale within the discount period, the debit to accounts payable will be $______.
c- The check-cashing store also makes one-month add-on interest loans at 8 percent discount interest per...
c- The check-cashing store also makes one-month add-on interest loans at 8 percent discount interest per week. Thus if you borrow $100 for one month (four weeks),the interest will be ($100 × 1.084 ) − 100 = $36.05. Because this is discount interest, your net loan proceeds today will be $63.95. You must then repay the store $100 at the end of the month. To help you out, though, the store lets you pay off this $100 in installments of...
A basic ARM is made for $250, 000 at an initial interest rate of 6% for...
A basic ARM is made for $250, 000 at an initial interest rate of 6% for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 8 percent. a. Assuming that a fully amortizing loan is made. What is the monthly payment during year 2? b. What would be the monthly payments in year 2 if it is an interest-only ARM loan for the first two years?...
A basic arm is made for $200000 at an initial interest rate of 6 percent for...
A basic arm is made for $200000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 7 percent. (a) Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? (b) Based on (a), what will the loan balance be at the end of year 1? (c) Given that the interest...
A basic ARM is made for $250, 000 at an initial interest rate of 6% for...
A basic ARM is made for $250, 000 at an initial interest rate of 6% for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 8 percent. Assuming that fulling amortizing is made and negative amortization is allowed if payment cap reached. If the ARM loan has a maximum 5% annual increase payment cap, what is the monthly payment during year 2?
6. Cathy was primary student. She bought a bracelet online as her mother’s birthday present. Cathy...
6. Cathy was primary student. She bought a bracelet online as her mother’s birthday present. Cathy used her father’s personal data and credit card information for the payment. The bracelet seller emailed his acceptance of the order to Cathy. Finally, Cathy’s father want to refuse the payment. Does Cathy’s father claim it is a voidable contract between Cathy and the bracelet seller? Please explain. 7. Mr Shek had a flat to sell and he places an advertisement in the newspaper...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT