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In: Finance

15.Baxter Bolts purchased a new machine for $98,000. Baxter Bolts acquired a loan at their bank...

15.Baxter Bolts purchased a new machine for $98,000. Baxter Bolts acquired a loan at their bank for the full amount of the purchase price at the rate of 6.90%(APR). Baxter Bolts ismaking monthly payments on the loanthat has a seven year term. Baxter Bolts has made each of the first 36 monthly payments at the end of the period and it is the beginning of the fourth year of theseven year term. How much interest will Baxter Bolts pay in the first month of the fourth year of the loan?

A.$354.70

B.$359.81

C,$395.62

D.$371.08

E.$362.44

16.Corapurchases a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. Assume she gets a 15-year mortgage with a 6.00%interest rateand she makes a monthly payment. If the house appreciates at a 2.00%rate per year, what will be the value of the house in 7 years? If equity is the value of the house minus how much is owedon the house, then how much equity does Corahaveat the end of seven years?

A.$185,612; $79,663

B.$185,612; $81,039

C.$172,303; $65,102

D.$172,303; $79,663

E.$172,303; $85,615

19.Marilynborrowed $84,500 in student loans and she has just graduated. She earns enough at her newjob toallow her to pay $500 per monthon the loan. Ifthe annual rate on the student loan is 4.72% (compounded monthly), how long will it take herto pay off her student loans? (Hint: Use the “NPER” function in Excel)

A.more than 25years

B.more than 24 years, 3months, but less than 25 years

C.more than 23 years, 6months, but less than 24 years, 3 months

D.morethan 22 years, 9months, but less than 23 years, 6 months

E.less than 22 years, 9 months

Expert Solution

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jeff jeffy answered 10 months ago

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