Question
In: Accounting
You take out a car loan at your local bank for the purchase of a new...
You take out a car loan at your local bank for the purchase of a new car. The total cost including taxes and preparation costs are: $25,985. Your bank’s nominal interest rate for car loans is at the moment 7 1⁄4 % for a 5-year amortization period. Calculate your monthly payments and the remaining balance after 3 years.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Anna decides to take out a four-year loan for $30,000 to purchase a new car. Her...
Anna decides to take out a four-year loan for $30,000 to
purchase a new car. Her loan officer tells her that she will make
equal, monthly payments for the loan at an interest rate of 8
percent per year.
How much, in total, did Anna pay in interest over the course of
the loan?
Anna decides to take out a four-year loan for $30,000 to purchase a new car. Her...
Anna decides to take out a four-year loan for $30,000 to
purchase a new car. Her loan officer tells her that she will make
equal, monthly payments for the loan at an interest rate of 8
percent per year.
What will the balance of the loan be after 2 years of making
payments?
Your company is considering to take a loan from the local bank. Bank charges a 1.25%...
Your company is considering to take a loan from the local
bank.
Bank charges a 1.25% interest rate per quarter.
Then the rate 1.25*4 =5% is called ____
annual percentage rate
discount rate
compound interest rate
effective annual rate
You want to buy a car, and a local bank will lend you $10,000.The loan...
You want to buy a car, and a local bank will lend you $10,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 8% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.
You want to buy a car, and a local bank will lend you $25,000.The loan...
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 5% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.Monthly loan payment: $EAR: %Find the following...
You want to buy a car, and a local bank will lend you $15,000. The loan...
You want to buy a car, and a local bank will lend you $15,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 8% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places. Monthly loan payment: $ EAR: %
You want to buy a car, and a local bank will lend you $20,000.The loan...
You want to buy a car, and a local bank will lend you $20,000.
The loan will be paid off over 5 years with equal monthly
payment.a) If the nominal interest rate of the loan is quoted as 6% with
monthly compounding assumption, what is your monthly payment?b)What is the effective annual rate of Part(1)?c) If the nominal interest rate of the loan is quoted as 6% with
semiannual compounding assumption, what is your monthly
payment?
You want to buy a car, and a local bank will lend you $40,000. The loan...
You want to buy a car, and a local bank will lend you $40,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 10% 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.
%
You want to buy a car, and a local bank will lend you $30,000. The loan...
You want to buy a car, and a local bank will lend you $30,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 5% 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.
%
You want to buy a car, and a local bank will lend you $20,000. The loan...
You want to buy a car, and a local bank will lend you $20,000.
The loan would be fully amortized over 5 years (60 months), and the
nominal interest rate would be 12%, with interest paid monthly.
a)What would be the monthly loan payment?
b)What would be the loan’s EAR?
c) If the nominal interest rate of the loan is quoted as 12%
with semiannual compounding assumption, what is your monthly
payment?
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