LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5% with monthly payments of $673.65. How much will she spend on interest over the life of the loan? Round your answer to the nearest cent. Use the spreadsheet to solve.
Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…
A: A mortgage refers to a loan availed against the purchase of real estate which includes a house,…
Q: A person needs $18,000 immediately as a down payment on a new home. Suppose that she can borrow…
A: Continuously compounded interest rate refers to the interest rate that is calculated on the…
Q: A woman went to the Beneficial Loan Company and borrowed $10,000. She must pay $323.53 at the end of…
A: Given information: Borrowed amount is $10,000 Monthly payment is $323.53 Number of periods is 60…
Q: Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and…
A: Equated monthly installment or EMI is referred to as the amount that are paid in monthly basis…
Q: Mayesha purchased a large screen TV for $4,000 and can pay it off in ten months with an add-on…
A: P = $ 4000 r = .135 t = (10/12) years
Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…
A: Using excel pmt function
Q: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…
A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…
Q: Carter bought a new car and financed $25,000 to make the purchase. He financed the car for 60…
A: Loan amount (PV) = $ 25000 Interest rate = 5.5% Monthly interest rate (r) =…
Q: 6. Darnelle has a $10,000, 3-year loan with an APR of 5%. She uses the table on page 159 to compute…
A: The additional amount over the borrowed amount that a borrower pays to the lender is term as the…
Q: Jacqueline received a $30,950 loan from a bank that was charging interest at 4.50% compounded…
A: The periodic payment is based on the loan amount, the periodic interest rate, and the number of…
Q: While Mary Corens was a student at the University of Tennessee, she borrowed $14,000 in student…
A: It can be calculated using following function in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…
Q: Joseph received a loan of $40,000 from the bank at 4.25% compounded monthly. If she had to repay…
A: Mortgage/ Borrowings: Borrowings are the loans taken by an individual, from banks or non-banking…
Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: While buying a new car, Thomas made a down payment of $1,000.00 and agreed to make month-end…
A: Present value of annuity is current value of the future annuity flow.
Q: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12%…
A: given, bank loan = $35,000 installment = 5 interest = 12%
Q: A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per…
A: The concept of the time value of money states that the same amount of money is worth more now than…
Q: Melissa Hernandez received an 8 year subsidized student loan of $26,000 at an annual interest rate…
A: The loan has been paid after completing one year of graduation, so first, compute the future value…
Q: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: Reggie availed of a deferred payment scheme from a bank that gave her an option to pay ₱5,500…
A: solution given Monthly payment 5500 Rate of interest 12% annual Compounding…
Q: Liz borrowed $52,500 to purchase a home. The bank offered her an APR of 3.49% for a term length of…
A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…
Q: While Jack was a student at the University of Georgia she borrowed $12,000in student loans at an…
A: The nper function in excel can be used for the purpose of determining the amount of time required to…
Q: Tina deposited $20 in a savings account earning 5% interest, compounded annually. To the nearest…
A: Interest is the amount charged or received for loan taken or investment made. There can be simple…
Q: Mariah applied for a loan in a bank that gave 10, 000 pesos monthly payment for 2 years. The first…
A: The present value of an annuity is the current value of the future payments that are calculated…
Q: Bridgit has purchased a new home at auction for $655,000. To be able to pay for the house, she takes…
A:
Q: Taylor Swift, a college student of USeP decides to get a student loan amounting to $4000 with an…
A: Given, The loan amount is $4000 Rate is 5% compounded monthly Monthly payment is $250
Q: Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the…
A: Cost of piano is $132,000 Down payment is 25% Equal Monthly Payment is $1,650 Interest rate…
Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…
A: The amount of interest paid is calculated as difference of total payments less present value of…
Q: To purchase a car, Sarah took out a 60-month loan for $33,000 with a 7.6% annual interest rate.…
A: If a loan is repaid with regular equal payments, each payment consist principal part and interest…
Q: Bria has $450,000 saved for retirement in an account earning 2.4% interest, compounded weekly. How…
A: Future Value:-It is the value of an investment at a future date based on the growth rate. It helps…
Q: While Mary Corens was a student at the University of Tennessee, she borrowed $15,000 in student…
A: Using excel NPER function
Q: When Mary had 4 years left in college, she took out a student loan for $15,110. The loan has an…
A: Loan Amount = 15,110 Time Period in college = T = 4 years Time Period for loan repayment = N = 36…
Q: Aretha ran up $38,800 on her credit card, which charges 13.95%. If she decides to cut up her card…
A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…
Q: Pat bought a home for $165,000 and made a $25,000 down payment. She got a fixed rate mortgage at 5%…
A: Computation:
Q: Elin purchased a used car for $9,500. She wrote a check for $2,000 as a down payment for the car…
A: In this question Elin purchased a car for $ 9500 and pay down payment of $ 2000 & for balance of…
Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 5…
A: Installment is the amount of periodic payments made by the borrower to the lender in order to pay…
Q: A student graduates from college with $49,000 in student loans with a 6.8% annual simple interest…
A: Loan is the amount which is borrowed from other sources for a specific period and will be paid with…
Q: Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that…
A: Loan amount = $ 4,000 Period = 5 Years Interest amount = $ 1,600
Q: In 10 months, Alex will need $1,320.00 to pay her college tuition. How much does she need to invest…
A: Computation of amount need to be invested by Alex is as follows:Rate of interest=8.745%amount after…
Q: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…
A: Price of house = $ 360,000 Dow payment =10% Loan amount (PV) = 360,000*(1-0.10)…
Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…
A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…
Q: Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest…
A: Interest is an extra amount which borrower has to pay on the deposited amount for the period. It is…
Q: A recent college graduate buys a new car by borrowing $18,000 at 8.4%, compounded monthly, for 5…
A: Borrowing = 18,000 Compounding Monthly, hence we will divide interest by 12 and multiply time period…
Q: Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Dana has made a down payment of $100,000 on a recent home purchase for $300,000. She was able to…
A: Using excel PMT function
Q: Carmen Hernandez has saved $8,000 for a deposit on a car. The highest monthly payment she can afford…
A: Deposit amount = $ 8,000 Monthly payment = $ 455 Annual interest rate = 11% Monthly interest rate =…
LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5% with monthly payments of $673.65. How much will she spend on interest over the life of the loan? Round your answer to the nearest cent. Use the spreadsheet to solve.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?enny takes out a new car loan for $41,000 at 5% annual interest rate for 5 years. a. What is Jenny’s monthly payment? Two years later, Jenny has already made 24 monthly payments (of amount calculated in a.) and has 36 remaining payments. What is the remaining principal on the loan? Solve using two methods. b. Solve by calculating the Present Worth of the remaining 36 payments. c. Solve using Excel Spreadsheet function CUMPRINC as discussed on page 165 of text. (note: you should get same answer on b. and c.)Heather McIntosh recently purchased a home for $175,000. She put $22,500 down and took out a 25-year loan at 6.5 percent interest. Round your answers to the nearest cent. Use Table 9-4 to determine her monthly payment. Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places. How much of her first payment will go toward interest and principal? Interest will be $ Principal will be $ How much will she owe after that first month? (table 9-2) $ How much will she owe after three months? Do not round intermediate calculations.
- Determine whether each scenario below is a savings/investments question or a loans question. 1. Sabrina finances a $21,999 car at 4.25% APR over 5 years. If she makes a down payment for $5,000, how much will she end up paying in interest for the car? 2. Alejandro deposits $1,500 into an investment account with an APR of 2.25% compounded monthly. How much does Alejandro need to put into his account each month in order to have $5,000 in 3 years to purchase a car in cash? 3. Amy wants to buy a house for $150,000. She doesn't have enough yet for a 20% down payment. If she puts $2,000 into the account now and $500 every month, how long will it take for her to have enough for a 20% down payment to buy this house? 4. Arnie paid $500 for his $1,200 laptop. If he finances the rest at 6.75% over 24 months, how much money will he end up paying in total for this laptop?Arnie invests $18,400 in an account that pays an annual interest rate of 15 %. How much money does he have in the account after one year? Solve the problem by first formulating an equation. Enter the solution in the answer box AND Upload your work. Your Answer: AnswerJina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 7.45%. Her loan is for $12,700 for 62 days. Assume eachday is365of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.(a) Find the interest that will be owed after 62 days. (b) Assuming Jina doesn't make any payments, find the amount owed after 62 days.
- While Mary Corens was a student at the University of Tennessee, she borrowed $15,000 in student loans at an annual interest rate of 10%. If Mary repays $1,800 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number. ________year(s)If Laura invests $1,230,00 in an account earning 2.95% simple interest, how much money will be her account after 2 years? After 6 years? After 2 years: After 6 years: (Note: Your answers should include a dollar sign and be accurate to two decimal places) Note: You can earn partial credit on this problem.Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
- A man borrows $60,000 to help pay for his college expenses. He intends to pay off the loan with regular monthly payments over the next 20 years. Find the monthly payment if he is being charged 4.7% interest per year, compounded monthly. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The monthly payment is Blank 1. Calculate the answer by read surrounding text. dollars.A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.