A pottery factory purchases a continuous belt conveyor kiln for $43,000. A 6.4% APR loan with...
A pottery factory purchases a continuous belt conveyor kiln for $43,000. A 6.4% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $406.71, over what term is this loan being paid?
A) 12 years
B) 13 years
C) 11 years
D) 14 years
Please write out and explain. Thanks
Homework Answers
Information provided:
Present value= $43,000
Interest rate= 6.4%/12= 0.5333
Monthly payment= $406.71
The term of the loan is calculated by entering the below in a financial calculator:
PV= -43,000
PMT= 406.71
I/Y= 0.5333
Press the CPT key and N to calculate the term of the loan.
Press the CPT key and N to compute the term of the loan.
The value obtained is 156.
Therefore, the term of the loan is 156 months or 156/12= 13 years.
Hence, the answer is option b.
In case of any query, kindly comment on the solution.
Add Answer to:
A pottery factory purchases a continuous belt conveyor kiln for
$43,000. A 6.4% APR loan with...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage at 6% APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: A) S3094 B) $1934 C) SI547 D) $2708 15) 15. A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortga...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
10) An investment will pay you 51 20 in one year and $200 in two years....
10) An investment will pay you 51 20 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) $294.69 B) $286.84 C) $299.07 D) $320.00 10) 11). TU) A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years, or as equal annual payments at the end of each of the next...
10) An investment will pay you S120 in one year and $200 in two years. If...
10) An investment will pay you S120 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) S294.69 B) $286.84 C) $299.07 D) $320.00 11. A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120.000 at the end of five years, or as equal annual payments at the end of each of the next five years. If...
Consider the following loan. Complete parts (a)-(c) below An individual borrowed $73,000 at an APR of 7 % , which w...
Consider the following loan. Complete parts (a)-(c) below An individual borrowed $73,000 at an APR of 7 % , which will be paid off with monthly payments of $595 for 18 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ the annual interest rate is the number of payments per year is the loan term is years, and the payment amount...
4.55 With a $350,000 home mortgage loan with a 20-year term at 9% APR compounded semiannually...
4.55 With a $350,000 home mortgage loan with a 20-year term at 9% APR compounded semiannually compute the total amounts paid to principal and interest over the first five years ownership given monthly payments.
B c D E F G H $ $ 400,000.00 Original Loan 4.50% APR Interest Rate...
B c D E F G H $ $ 400,000.00 Original Loan 4.50% APR Interest Rate 30 Term in Years HARDCODE ANSWERS How many months does it take to pay off the loan? Please Review Month Outstanding Principal USE ONLY FORMULAS IN THIS CHART Interest Principal Total Payment Additional Principal 1 What is the total payments paid over the loan? 2 3 Please Review 4 What is the total interest paid over the loan? Please Review 5 6 7 How...
13-19 odd please 13. A $10,000 loan is to be amortized for 10 years with quarterly...
13-19 odd please
13. A $10,000 loan is to be amortized for 10 years with quarterly payments of $334.27. If the interest rate is 6% compounded quarterly, what is the unpaid balance immediately after the sixth payment? 14. A debt of $8000 is to be amortized with 8 equal semi- annual payments of $1288.29. If the interest rate is 12% compounded semiannually, find the unpaid balance immediately after the fifth payment. 15. When Maria Acosta bought a car 2 years...
1.Calculate the amount of interest that will be paid on a motorcycle loan of $9,000 with...
1.Calculate the amount of interest that will be paid on a motorcycle loan of $9,000 with a simple interest rate of 7% over the course of 5 years. 2.Calculate the amount of interest that will be paid on a house that costs $110,000 with a simple interest rate of 4% over 30 years. How much total will eventually be paid for the house? 3.A pontoon boat is being sold for $65,000. With an offer of 6% APR (simple interest)for 10...
please provide answers to ALL 3 questions. You are a financial investigator for the SEC. You...
please provide answers to ALL 3 questions.
You are a financial investigator for the SEC. You discover a few pieces of information regarding a loan taken out by a suspect in a fraud case. The loan was to be repaid with level annual payments of 3,576.71. Also, the Outstanding Balance at time 0 was 24,000 and the Outstanding Balance at time 1 was 22,343.29 3. in order to help convict the suspect, you need to find a the interest rate...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage at 6% APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: A) S3094 B) $1934 C) SI547 D) $2708 15) 15. A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
10) An investment will pay you 51 20 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) $294.69 B) $286.84 C) $299.07 D) $320.00 10) 11). TU) A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years, or as equal annual payments at the end of each of the next...
10) An investment will pay you S120 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) S294.69 B) $286.84 C) $299.07 D) $320.00 11. A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120.000 at the end of five years, or as equal annual payments at the end of each of the next five years. If...
Consider the following loan. Complete parts (a)-(c) below An individual borrowed $73,000 at an APR of 7 % , which will be paid off with monthly payments of $595 for 18 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ the annual interest rate is the number of payments per year is the loan term is years, and the payment amount...
4.55 With a $350,000 home mortgage loan with a 20-year term at 9% APR compounded semiannually compute the total amounts paid to principal and interest over the first five years ownership given monthly payments.
B c D E F G H $ $ 400,000.00 Original Loan 4.50% APR Interest Rate 30 Term in Years HARDCODE ANSWERS How many months does it take to pay off the loan? Please Review Month Outstanding Principal USE ONLY FORMULAS IN THIS CHART Interest Principal Total Payment Additional Principal 1 What is the total payments paid over the loan? 2 3 Please Review 4 What is the total interest paid over the loan? Please Review 5 6 7 How...
13-19 odd please
13. A $10,000 loan is to be amortized for 10 years with quarterly payments of $334.27. If the interest rate is 6% compounded quarterly, what is the unpaid balance immediately after the sixth payment? 14. A debt of $8000 is to be amortized with 8 equal semi- annual payments of $1288.29. If the interest rate is 12% compounded semiannually, find the unpaid balance immediately after the fifth payment. 15. When Maria Acosta bought a car 2 years...
please provide answers to ALL 3 questions.
You are a financial investigator for the SEC. You discover a few pieces of information regarding a loan taken out by a suspect in a fraud case. The loan was to be repaid with level annual payments of 3,576.71. Also, the Outstanding Balance at time 0 was 24,000 and the Outstanding Balance at time 1 was 22,343.29 3. in order to help convict the suspect, you need to find a the interest rate...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago