Question

In: Finance

Lauren knows she can afford to make monthly payments of $525 for 60 months. How much...

Lauren knows she can afford to make monthly payments of $525 for 60 months. How much will the bank lend her today on a 3% APR car loan in exchange for her promised monthly payments?

Solutions

Expert Solution

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.


Related Solutions

Sally wants to buy a car but is unsure how much of . she can afford....
Sally wants to buy a car but is unsure how much of . she can afford. The maximum monthly payment she can afford is $780.. Her bank’s interest rate is 14%. annually if she pays off the loan over 5 years. What is the maximum amount she can afford to borrow?    Impossible to calculate given the available data She can afford $53, 352.05 She can afford $46,800.03 D-She can afford $33,522,07    Someone said all options are wrong, can you...
Mary wants to buy a car but is unsure how much of she can afford. The...
Mary wants to buy a car but is unsure how much of she can afford. The maximum monthly payment she can afford is $780. Her bank's interest rate is 14% annualy if she pays off loan over 5 years. what is the maximum amount she can afford to borrow? - impossible to calculate with given data - she can afford $53,325.05 -she can afford $46,800.03 -she can afford $33,522.07 (show all excel work)
7.         I am a student and can afford a monthly car payment of $350. How much...
7.         I am a student and can afford a monthly car payment of $350. How much could I finance on a car purchase, assuming auto borrowing rates are 3.0%, and the term of the loan is 5 years? 8.         I have since graduated from Webster. I can now afford a payment of $550 per month. How much could I finance now, assuming terms of 3.0%, and 6 years?
A young engineer wishes to buy a house but only can afford monthly payments of $500....
A young engineer wishes to buy a house but only can afford monthly payments of $500. Thirty-year loans are available at 12% interest compounded monthly. If she can make a $5,000 down payment, what is the price of the most expensive house that she can afford to purchase? Solve using annuities
An engineer wishes to buy a house but can only afford monthly payments of $1500. 30-...
An engineer wishes to buy a house but can only afford monthly payments of $1500. 30- year loans are available at 5.75% interest compounded monthly. If the engineer can make a $20,000 down payment, what is the price of the most expensive house that the engineer can afford to purchase?
You are looking to buy a car. You can afford $650 in monthly payments for five...
You are looking to buy a car. You can afford $650 in monthly payments for five years. In addition to the loan, you can make a $750 down payment. If interest rates are 8 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
​Mary's credit card situation is out of control because she cannot afford to make her monthly...
​Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and​ APRs: Card​ 1, ​$4,700​, 19​%; Card​ 2, ​$5,500​, 23​%; and Card​ 3, ​$3,100​, 17​%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured​ Mary's attention by stating they can save Mary 24​% per month on her credit card payments. This company charges 15.5​% APR. Is the​...
You just borrowed $10,000 from the crooked bank at 10% with monthly payments for 60 months....
You just borrowed $10,000 from the crooked bank at 10% with monthly payments for 60 months. you had to pay an origination fee of $250 at the time you borrowed the money. What is the APR on the loan?
Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?
You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?Group of answer choices8.90 percent8.95 percent9.00 percent9.15 percent9.20 percent
8) You can afford to pay $375 monthly car payments. Assume an annual interest rate of...
8) You can afford to pay $375 monthly car payments. Assume an annual interest rate of 6%, and assume 60 monthly payments. You can afford to put down $3,000. Can you afford to buy a car that costs $30,000?  
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT