4.Draymondvisits a car dealership looking for a sports car to cruise the city in style. He...

4.Draymondvisits a car dealership looking for a sports car to cruise the city in style. He tells thedealership that he can repay a loan at $475per month for the next sixyears. If thedealership’s bankis charging customers 6.36%(APR), how much would it be willing to lend Draymond?

A. lessthan $28,400

B. more than $28,400 but less than $29,125

C. more than $29,125 but less than $29,850

D. more than $29,850 but lessthan $30,675

E. more than $30,675

5.A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,500 per month for the next threeyears and then $3,000 per month for another twoyears afterthat.If the bank ischarging customers 7.56%APR, how much would it be willing to lendthe business owner?

A. more than $133,625

B. more than $132,750, but less than $133,625

C. more than $131,875, but less than $132,750

D. morethan $131,000, but less than $131,875

E.less than $131,000

14.Howardjust took out a $18,000 loan for hissmall business. The loan has a threeyearterm and repayment is in the form of threeequal end-of-year payments.The interest rate on the loan is 8.75%per year.How much principal does Howardpay in the secondpayment?

A.$5,504

B.$5,986

C.$6,235

D.$6,510

E.$7,079

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 4 months ago

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