Homework Answers
| Cost of the Car = | 10000 | ||
| Monthly Payment= | 849.67 | ||
| Total Payment Per Year= | 10196.04 | ||
| Total Interest Per Year= | 196.04 | ||
| INTEREST=PTR/100 | |||
| WERE | P=PRINCIPAL | ||
| T=TIME PERIOD | |||
| R=RATE OF INTEREST | |||
| 196.04= | (10000*1*R)/100 | ||
| R= | (196.04*100)/10000 | ||
| R= | 1.9604 | ||
| PART-1 | |||
| EFFECTIVE INTEREST RATE=1.9604% | |||
| PART-2 | |||
| AS PER LAW DEALER NEED TO QUOTE 1.9604%. | |||
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Intro You're about to buy a new car for $10,000. The dealer offers you a one-year...
Problem 25 >> Intro You're about to buy a new car for $10,000. The dealer offers...
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answer check before I submit my final answer Problem 23 Intro You're about to buy a...
answer check before I submit my
final answer
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Problem 25 >> Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $877 3 every month for the next 12 months. Since you pay $8773 12 = $10.528 in total, the dealer claims that the loan's annual interest rate is (10,528-10.000710,000 = 5.28% Part 1 18 Attempt 9/10 for 10 pts. What is the actual effective annual rate? 3+ decimals Submit IB Attempt 7/10 for 10 pts Part 2...
answer check before I submit my
final answer
Problem 23 Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $871.73 every month for the next 12 months. Since you pay $871.73 12 $10,461 in total, the dealer claims that the loan's annual interest rate is (10.461-10,000)/10,000 4.608%. Part 1 E -Attempt 9/10 for 12 pts. What is the actual effective annual rate? 3+ decimals Submit Show all parts
Problem 9 Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2.5%. You have to pay $280 every month for 60 months. Part 1 B Attempt 1/10 for 8 pts. What is the present value of the cash flows if it's an ordinary annuity? No decimals Submit Part 2 What is the future value of the cash flows if it's an ordinary annuity? 8 - Attempt 1 /10 for 8...
Problem 34 Intro You have $2,000 in your savings account, and want to buy a car for $20,000 Attempt 4/10 for 10 pts. Part 1 If you want to buy the car in 10 years, what interest rate would you need to earn? 3+ decimals Submit
Intro You just took out a 15-year traditional fixed-rate mortgage for $600,000 to buy a house. The interest rate is 12% (APR) and you have to make payments monthly. IB Attempt 2/10 for 10 pts. Part 3 What is the outstanding balance after 1 year if you have made all 12 payments on time? No decimals Submit
8. You purchased a new car for sis,000. The dealer offers you an interest rate of 5% over years. a) What would your monthly payment be? b) Suppose you would like to save interest by paying the loan off in 3 years. How much more a ma would you need to pay? c) What would the effective interest rate be if you paid off the car in 3 years? 9. Sketch the annual cash flow diagrams for each case in...
Intro You make a one-time investment of $600 and leave it for 5 years, earning an annual interest rate of 9%. B Attempt 1/10 for 8 pts. Part 1 How much interest will you have earned after 5 years? No decimals Submit B Attempt 1/10 for 8 pts. Part 2 If you leave the eitire amount in your account for another 5 years and earn the same interest rate, how much interest will you earn over the second 5-year period?...
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Exercise 1 - Time value of money: You want to buy a brand new Tesla Model S car. The dealer offers you 3 payment options: (1) Make monthly payments of S2,325 over a period of 3 years at the end of every month. (2) Pay $10,000 upfront, and $65,000 3 years from now. Mabe 1 qal pmecet 33 Annual interest rate is 12%. Required: 1. Calculate the present value of option (1) 2. Calculate the present value of option (2)...
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