In order to buy a car, you borrow $31,500 from a friend at
9%/year compounded monthly...
In order to buy a car, you borrow $31,500 from a friend at
9%/year compounded monthly for 4 years. You plan to repay the loan
with 48 equal monthly payments.
How much interest is in the 23rd payment? $enter a dollar
amount
In order to buy a car, you borrow $19500 from a friend
at 6%/year compounded monthly for 4 years. You plan to repay the
loan with 48 equal monthly payments.
a. How much are the monthly payments?
b. How much interest in in the 23rd
payment?
c. What is the remaining balance after the
37th payment?
You need $20,000 to buy a car. The interest rate is 14%
compounded monthly. Calculate your monthly payments if you want to
repay the loan in equal amounts over 4 years.
You will buy a new car today. You will borrow the
full price of the car. You will get a
FIVE year loan that will be paid back
annually. It will take you the full
FIVE years to pay back the loan. (In other
words, you will not pay it off early.) You will pay back
the same amount every year (an annuity). The auto dealership offers
you 3 choices.
1) Pay $30,000 for the car at 0% interest for the
FIVE years.
2) Pay $28,000 for the car at...
You borrow $4500 for one year from a friend at an interest rate
of 2% per month instead of taking a loan from a bank at a rate of
17% per year (compounded monthly). Compare how much money you will
save or lose on the transaction.
Your friend wants to borrow $2,500 and pay you back the $2,500
in a year from now. You agree to the loan
but tell your friend he must pay you $500 up-front.
a) What is the annual effffective rate of interest you have
charged your friend?
b) Before your friend agrees to the deal, he gets a letter in
the mail saying he qualifified for a a credit card
from McMaster Bank with a $2,500 limit which charges an annual...
Suppose you borrow $ 20,000 at a 9% monthly compound,
for 5 years. Knowing that 9% represents the market interest rate,
the monthly payment cn current dollars It will be $ 415. 17. If the
average monthly general inflation rate is expected to be 0.5%, what
will be the annual equivalent of monthly payments equal cn constant
dollars?
If you borrow to buy a new car, which of the following items on
the balance sheet will be affected?
unable to determine
debts only
assets and debts
assets only
You borrow $24,000 to buy a car. The loan is to be paid off in
quarterly installments over four years at 10 percent interest
annually. The first payment is due one quarter from today. What is
the amount of each quarterly payment?
a) $1,745
b) $1,794
c) $1,838
d) $1,876
I need the hand-written formula, not the calculator input.
16. Suppose we borrow from a credit
card company at an APR of 24%, compounded monthly. What is the EAR
on this loan?
A.
26.0%
B. 27.1%
C. 26.8%
D. 27.8%
17. Related to the previous question,
what is the EAR on this loan if compounded daily.
A.
26.8%
B.
28.6%
C.
27.1%
D.
27.9%
20. An investor buys 100 shares of a
stock at $200 per share on 45% margin. The stock goes to...