A $52,500 new car loan is taken out with the terms 9% APR for 60 months....

A $52,500 new car loan is taken out with the terms 9% APR for 60 months. How much are monthly payments on this loan? ________.

A pottery factory purchases a continuous belt conveyor kiln for $72,000. A 6.0% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $746.43, how many years will it take for this loan to be paid?

Solutions

Expert Solution

Q-1)

Loan amount for new Car = $52,500

Monthly Interest Rate = 9%/12 = 0.75%

Calculating the Monthly Loan payment using the Excel "PMT" function:-

So, Monthly Paymnet of loan is $1089.81

Q-2)

Loan amount = $72,000

Monthly payment aginst loan = $746.43

Monthly Interest Rate = 6%/12 = 0.5%

Calculating the Number of months it will take to pay off the loan using excel "NPER" function:-

Number of months = 132

Number of Years = 132 months/12 months

Number of Years = 11 years

So, years will it take for this loan to be paid is 11

If you need any clarification, you can ask in comments.

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jeff jeffy answered 1 year ago

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