In: Finance
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?
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
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