Joan borrowed $20,000.00 to buy a car. She repaid $4800.00 three months later and $9000.00 eight months later. Aftertwelve months, she borrowed an additional $7000.00, and repaid $5800.00 after 15 months. She paid the entirebalance, including the interest, after 24 months. Interest was 8% compounded monthly for the first year and 8.3%compounded monthly for the remaining time. What was the size of the final payment?The final payment is $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Grase

Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Answered: Joan borrowed $20,000.00 to buy a car.…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

Joan borrowed $18,000.00 to buy a car. She repaid $4700.00 three months later and $8300.00 nine months later. After twelve months, she borrowed an additional $5800.00, and repaid $5400.00 after 15 months. She paid the entire balance, including the interest, after 24 months. Interest was 5% compounded monthly for the first year and 4.7% compounded monthly for the remaining time. What was the size of the final payment? The final payment is $
Stacey purchased a car for $58,300; she paid 5% of the cost as a down payment and financed the balance amount at 3.9% compounded quarterly for 5 years. a) What is the size of payment made at the end of every three months to settle the loan? $
Lauren purchased a car for $53,000; she paid $13250 as a down payment and financed the balance amount at 3.1% compounded monthly for 4 years. a) What is the size of payment made at the end of every month to settle the loan? $ b) What was the amount of interest charged for the entire loan?
Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $826.65 at the end of every year over five years. If interest is 4.6% compounded quarterly, what was the original loan balance?
Juan took out a $20,000 loan for 146 days and was charged simple interest.The total interest he paid on the loan was $488.As a percentage, what was the annual interest rate of Juan's loan?Assume that there are 365 days in a year, and do not round any intermediate computations.
Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance amount at 3.9% compounded monthly for 25 years. the monthly payment is 1141.293. a) What was the amount of interest charged for the entire loan? b) If Carlos pays an additional $100 per month, how many periods will it take to pay off the load? c) If Carlos pays an additional $100 per month, how much interest will be saved?
Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and financed the $12,000 balance payable in 4 years but in monthly installments. The interest rate is 9% compounded monthly, and the loan will be repaid in equal monthly instalments for first two years and double it on the next two years. What is Elin's monthly car payment?
Carie purchased a car for $49,000; she paid $4900 as a down payment and financed the balance amount at 3.5% compounded monthly for 4.5 years. What was the amount of interest charged for the entire loan?
Kim deposits $1,000 in a savings account. Four years after the deposit, half the account balance is withdrawn. Then, $2,000 is deposited annually for an 8-year period, with the first deposit occurring 2 years after the withdrawal. The total balance is withdrawn 15 years after the initial deposit. If the account earned interest of 8% compounded annually over the 15-year period, how much was withdrawn at each withdrawal point?
Shantel purchased a car for $22,000; she paid $2200 as a down payment and financed the balance amount at 2.9% compounded monthly for 4 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Shantel pays an additional $200 per month, how many periods will it take to payoff the load? d) If Shantel pays an additional $200 per month, how much interest will be saved?
Kathy borrows $10,000 from the bank. For a four year loan, the bank requires annual end of year payments of $3,223.73. The annual interest rate on the loan is
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $18,000 at a rate of 8%/year compounded monthly. Her bank is now charging 11.4%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $ savings $

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS