This question has two parts answer both questions please thank you Part 1)When Maria Acosta bought...

This question has two parts answer both questions please thank you

Part 1)When Maria Acosta bought a car 2 1/2 years ago, she borrowed $17,000 for 48 months at 7.8% compounded monthly. Her monthly payments are $413.43, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 1/2 year mark? (Round your answer to the nearest cent.)

Part 2) A man buys a car for $39,000. If the interest rate on the loan is 12%, compounded monthly, and if he wants to make monthly payments of $800 for 48 months, how much must he put down? (Round your answer to the nearest cent.)

###please use proper formula for both questions, otherwise it will be wrong thank you ###

Solutions

Expert Solution

Part 1)

We will prepare the loan amortization table as shown below

Since interst rate is compounded monthly we will use monthly interest rate of 7.8/12 = 0.65% per month

Month	Opening Balance A	Interest @ 0.65% B	Instalment C	Closing Balance A+B-C
1	17,000.00	110.50	413.43	16,697.07
2	16,697.07	108.53	413.43	16,392.17
3	16,392.17	106.55	413.43	16,085.29
4	16,085.29	104.55	413.43	15,776.41
5	15,776.41	102.55	413.43	15,465.53
6	15,465.53	100.53	413.43	15,152.63
7	15,152.63	98.49	413.43	14,837.69
8	14,837.69	96.44	413.43	14,520.70
9	14,520.70	94.38	413.43	14,201.66
10	14,201.66	92.31	413.43	13,880.54
11	13,880.54	90.22	413.43	13,557.33
12	13,557.33	88.12	413.43	13,232.03
13	13,232.03	86.01	413.43	12,904.60
14	12,904.60	83.88	413.43	12,575.05
15	12,575.05	81.74	413.43	12,243.36
16	12,243.36	79.58	413.43	11,909.51
17	11,909.51	77.41	413.43	11,573.50
18	11,573.50	75.23	413.43	11,235.29
19	11,235.29	73.03	413.43	10,894.89
20	10,894.89	70.82	413.43	10,552.28
21	10,552.28	68.59	413.43	10,207.44
22	10,207.44	66.35	413.43	9,860.36
23	9,860.36	64.09	413.43	9,511.02
24	9,511.02	61.82	413.43	9,159.41
25	9,159.41	59.54	413.43	8,805.52
26	8,805.52	57.24	413.43	8,449.32
27	8,449.32	54.92	413.43	8,090.81
28	8,090.81	52.59	413.43	7,729.97
29	7,729.97	50.24	413.43	7,366.79
30	7,366.79	47.88	413.43	7,001.24

Outstanding Balance at the end of 2.5 years (30Months) =7001.24

Part 2)

First of all we will calculate the present value of 800 monthly payments for 48 months using the present value annuity factor 1%.48months ie 37.9739

PV of 800 monthly payment = 800 * 37.9739 = 30379

Since the present value of these payments is 30379

The man has to put down (39000 - 30379) = $ 8620.88

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

This question has two parts. Please answer both, thank you! Part A.) On the first day...

This question has two parts. Please answer both, thank you! Part A.) On the first day of the fiscal year, a company issues a $8,200,000, 9%, 9-year bond that pays semiannual interest of $369,000 ($8,200,000 × 9% × ½), receiving cash of $6,868,206. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash...

Please answer both parts of this question. Please answer both parts of this question. Question: a)...

Please answer both parts of this question. Please answer both parts of this question. Question: a) The channel in question 2 now has a 0.3m high smooth extended shelf built across its base to cover a submerged pipeline but still carries 50m3/s. Plot the specific energy diagram for 0 < y < 4m and calculate the critical depth and minimum specific energy. What are now the two possible flow depths for a specific energy of 4m upstream of the obstructions?...

Each question has 6-7 parts, depending on the work. Please answer every part. Thank you. -...

Each question has 6-7 parts, depending on the work. Please answer every part. Thank you. - What is the formula for the Average Propensity to Consume (APC)? Group of answer choices consumption divided by income the change in consumption divided by a change in income income divided by consumption the change in income to a change in consumption None of the above - How does the size of the Marginal Propensity to Consume (MPC) affect the size of the multiplier...

Each question has 8-9 parts, depending on the work. Please answer every part. Thank you. -...

Each question has 8-9 parts, depending on the work. Please answer every part. Thank you. - The government spending multiplier is Group of answer choices the ratio of the change in the equilibrium level of output to a change in government spending the difference between the new and old levels of government spending. the ratio of the change in government spending to the change in the equilibrium level of output the difference between the old level of equilibrium output and...

Each question has 6-7 parts, depending on the work. Please answer every part. Thank you. -Suppose...

Each question has 6-7 parts, depending on the work. Please answer every part. Thank you. -Suppose Government spending increases by $400 and Taxes increase by $400, and MPC = .80. Assuming that there is no crowding out, what will be the change in equilibrium income (Y*)? Group of answer choices - $400 NO CHANGE + $400 - $320 +$320 - Which of the following is NOT a Keynesian conjecture regarding consumption? Group of answer choices As income rises, APC falls....

When Maria Acosta bought a car 2 1 2 years ago, she borrowed $13,000 for 48...

When Maria Acosta bought a car 2 1 2 years ago, she borrowed $13,000 for 48 months at 7.8% compounded monthly. Her monthly payments are $316.15, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 1 2 -year mark? (Round your answer to the nearest cent.) $

Part 1 and Part II are independent. Please answer both parts. Part I: You are advising...

Part 1 and Part II are independent. Please answer both parts. Part I: You are advising company ABC on its merger and acquisition case. The buyer company offers ABC two options. Option #1= $100 million cash at the acquisition date. Option #2 = $25 million cash at the acquisition date and another additional $90 million AFTER one year. The management team of ABC perceives a 30 percent annual discount rate. Which option should ABC choose? Show your work. Part II:...

Please answer this two part question. Thank you! For this assignment you must write the following...

Please answer this two part question. Thank you! For this assignment you must write the following functions in Scheme: 2.1 Write a recursive function called eval-poly that takes a list of numbers representing the coefficients of a polynomial and a value for ? and evaluates the polynomial for the given value of ?. The list of coefficients should start with the term of lowest degree and end with the term of highest degree. If any term of intermediate degree is...

Please Answer both parts of the question below Answer the flowing questions that summarize the chapter....

Please Answer both parts of the question below Answer the flowing questions that summarize the chapter. Part A- How do confidence intervals and significance tests relate? Part B- What are the conditions (or assumptions) that must be checked when performing a significance test for the slope of a regression line?

Please answer part a) through part d) of the question below. Thank you. Question 3 A...

Please answer part a) through part d) of the question below. Thank you. Question 3 A tobacco refinery has four methods of measuring pH. To test the four methods, a supervisor randomly assigns each of 32 tobacco samples with known pH to one of the four methods, so that each method is applied to exactly eight samples. The difference between measured pH and the known pH is recorded, and the data is below. Method Sample Response A 1 -0.307 A...

Subjects