Question

In: Accounting

You take out a loan in the amount of $14,000 to buy a Kia Soul. The...

You take out a loan in the amount of $14,000 to buy a Kia Soul. The bank offers you a 3 year loan with an APR of 2.9%.

    a. Create an amortization table. Paste the first five or six lines in your Word document.

    b. What is the total amount you end up paying (including principal and interest)? (Hint: You can just add the payment column.)

Solutions

Expert Solution

  

In case of any doubts or Issues, Please comment below


Related Solutions

You take a fixed-rate, amortizing, 7-year loan to buy a car. The loan amount is $130,000,...
You take a fixed-rate, amortizing, 7-year loan to buy a car. The loan amount is $130,000, the APR is 4.8%. Payment is expected at the end of each month. How much is pure interest in your end-of-month 24 payment assuming all payments were made on time and no prepayments were made?
You take a fixed-rate, amortizing, 7-year loan to buy a car. The loan amount is $130,000,...
You take a fixed-rate, amortizing, 7-year loan to buy a car. The loan amount is $130,000, the APR is 4.8%. Payment is expected at the end of each month. what is the scheduled principal payment in your end of month 24 payment assuming all payments were made on time and no prepayments were made?
Suppose you take out a $107,000, 20-year mortgage loan to buy a condo. The interest rate...
Suppose you take out a $107,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 4%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Construct a mortgage amortization. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c....
You take out a loan for 10000. You pay off the loan with monthly payments of...
You take out a loan for 10000. You pay off the loan with monthly payments of 90 for 10 years. (a) What is the monthly effective rate? What is the annual effective rate? (b) What is the outstanding loan balance immediately after the 7th payment? Calculate using both the retrospective and prospective formulas. (c) Assume you miss the 13th and 53rd payments, what will be the outstanding loan balance after the 71st payment? actuarial science
You have taken out a loan of $32,000 to buy a new Saturn. The loan will...
You have taken out a loan of $32,000 to buy a new Saturn. The loan will be paid off in monthly instalments starting in one month over the next 4 years (48 payments). The interest rate on the loan is 8.25% per year. The bank doesn’t tell you, but it is compounded quarterly. (a) Find the amount of the monthly loan payments. (b) The amount owed immediately after the 30th payment is
You are looking to take out a ​$47,000 loan to pay for school. The loan would...
You are looking to take out a ​$47,000 loan to pay for school. The loan would be a​ five-year loan. The lender offers you a 7​% interest rate on the loan and also offers to structure it in one of three​ ways: what‘s your ending balance of the first year? ​a) As a discount loan ​b) As an​ interest-only loan c) As an amortized loan.
You are looking to take out a ​$53 ​,000 loan to pay for school. The loan...
You are looking to take out a ​$53 ​,000 loan to pay for school. The loan would be a​ five-year loan. The lender offers you a 8 ​% interest rate on the loan and also offers to structure it in one of three​ ways: ​a) As a discount loan ​b) As an​ interest-only loan ​c) As an amortized loan. Rounded to the nearest whole​ dollar, what will be your balance at the end of year 1 if you take the...
You want to buy a $249,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan
You want to buy a $249,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest.a) How much is the loan amount going to be? $b) What will your monthly payments be if the interest rate is 5%? $c) What will your monthly payments be if the interest rate is 6%?
You want to take out a $324,000 mortgage (home loan). The interest rate on the loan...
You want to take out a $324,000 mortgage (home loan). The interest rate on the loan is 5.3%, and the loan is for 30 years. Your monthly payments are $1,799.19. How much will still be owed after making payments for 10 years? $__________Round your answers to the nearest dollar. How much will still be owed after making payments for 15 years? $__________ Round your answers to the nearest dollar. How much will still be owed after making payments for 20...
You purchase a house that costs 800000TL. For this you take out a loan from a...
You purchase a house that costs 800000TL. For this you take out a loan from a bank for 25 years at 8.8% interest. You will pay your debt by making equal monthly payments. After 15 years the interest rates have dropped. Another bank offers you 7.5% interest. You decide to take out a second loan for the next 10 years, which will be paid monthly to this new bank and you pay off your total debt to the first bank....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT