An installment contract for the purchase of a car requires payments of $272.71 at the end of each month for 2.25 years. Interest is 5% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost? (a) The amount financed is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

An installment contract for the purchase of a car requires payments of $272.71 at the end of each month for 2.25 years. Interest is 5% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost? (a) The amount financed is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
An installment contract for the purchase of a car requires payments of $202.94 at the end of each month for 3.5 years. Interest is 8 % per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost?
An installment contract for the purchase of a car requires payments of $217.43 at the end of each month for 6 years. Interest is 6% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost? Question content area bottom Part 1 (a) The amount financed is $enter your response here. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Part 2 (b) The interest is $enter your response here. (Round the final answer to the nearest cent as needed.
An installment contract for the purchase of a car requires payments of $311.25 at the end of each month for 5 years. Interest is 4% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost?
A loan of $1500 is to be repaid by annual payments of $250 to commence at the end of the fifth year and to continue thereafter for as long as necessary. Find the amount of the final payment, if the final payment is to be larger than the regular payments. Assume i = 5%. Round your answer to two decimal places.
Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Principal Payment Ending Balance Total Beginning Balance Interest Year Payment Payment 1 3. 4 How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total interest paid < Prev 10 of 10 Next
A demand loan for $10,088.75 with interest at 7.1% compounded annually is repaid after 4 years, 8 months. What is the amount of interest paid? The amount of interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A loan is offered with bi-weekly payments (26 payments per year) and a 15.00 percent APR. What's the loan's effective annual rate (EAR)? Note: Round your final answer to 2 decimal places.
If you borrow $5,300 at $900 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) Effective rate a. Annual payment % b. Semiannual payments % c. Quarterly payments % d. Monthly payments %
Complete an amortization schedule for a 542, 000 loan to be repaid in equal instaliments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent.
Prepare an amortization schedule for a three-year loan of $99,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 2 3
An instalment contract for the purchase of a car requires payments of $280.49 at the end of each month for 3.75 years. Interest is 10% per annum compounded monthly. 1. The amount financed is: 2. The interest is: