When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 6.2% per year. Theannual payment on the car is $4,500. You have just made a payment and have now decided to pay off the loan byrepaying the outstanding balance. What is the payoff amount for the following scenarios?a. You have owned the car for one year (so there are four years left on the loan)?b. You have owned the car for four years (so there is one year left on the loan)?a. You have owned the car for one year (so there are four years left on the loan)?The payoff if you have owned the car for one year (so there are four years left on the loan) is $nearest cent.)(Round to the

Loan outstanding is the present value of loan payments that are outstanding and not paid yet based…

When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 6.2% per year. The annual payment on the car is $4,500. You have just made a payment and have now decided to pay off the loan by epaying the outstanding balance. What is the payoff amount for the following scenarios? . You have owned the car for one year (so there are four years left on the loan)? . You have owned the car for four years (so there is one year left on the loan)? . You have owned the car for one year (so there are four years left on the loan)? The payoff if you have owned the car for one year (so there are four years left on the loan) is $ nearest cent.) (Round to the

When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 6.2% per year. The annual payment on the car is $4,500. You have just made a payment and have now decided to pay off the loan by epaying the outstanding balance. What is the payoff amount for the following scenarios? . You have owned the car for one year (so there are four years left on the loan)? . You have owned the car for four years (so there is one year left on the loan)? . You have owned the car for one year (so there are four years left on the loan)? The payoff if you have owned the car for one year (so there are four years left on the loan) is $ nearest cent.) (Round to the

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

In order to buy a car, you borrow $22,500 from a friend at 10%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. d. Three and one-half years after borrowing the money, you decide to pay off the loan. You have not yet made the payment due at that time. What is the payoff amount for the loan?
Suppose you purchase a car for a total price of $25,445, including taxes and license fee, and finance that amount for 4 years at an annual interest rate of 8%. Please provide step by step to find the monthly payment and what is the total amount of interest paid over the term of the loan? Thanks
Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a bank to pay for the car. Also assume that you have agreed to pay off this loan by making equal monthly payments for 4 years. Given that the annual interest rate is 11%, how much will be the payment each month? How much will be the payment if you want to pay all the rest of the loan at once at the beginning of third year?
Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…
Suppose you purchase a car for a total price of $22,565 including taxes and license fee, and finance that amount for 7 years at an annual interest rate of 6%. (Round your answer to the nearest cent) a)find the monthly payment? b) what is the total amount of interest paid over the term of the loan?
Suppose you purchase a car for a total price of $24,790 including taxes and licensee and finance that amount for five years at an annual interest rate of 6%. (Round your answer to the nearest cent) Find the monthly payment? What is the total amount of interest paid over the term of the loan?
When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per year. The monthly payment on the mortgage $5,557. You have just made a payment and have now decided to pay off the mortgage by repaying the outstanding balance. What is the payoff amount if you have lived in the house for 20 years (so there are 10 years left on the mortgage)? Payoff amount is $____. (Round to the nearest dollar.)
You take out a 6-year amortized loan to buy a new car. After making monthly payments of $242.30 for 4 years, you still owe $5309. If you decided to pay the loan off, how much will you save in interest?
When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per year. The monthly payment on the mortgage $1,500. You have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance. What is the payoff amount if you have lived in the house for 18 years (so there are 12 years left on the mortgage)? Payoff amount is $
After making payments of $917.10 for 4 years on your 30-year loan at 8.1%, you decide to sell your home. What is the loan payoff?
You purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule. What are the periodic annual payment required for the mortgage? What are the interest payment for the first year? What is the first year principal repayment What is the balance owed at the end of the first year? What are the interest paid on the principal repayment for the second year ? What is the balance owed at the end of the second year ? Why did the interest paid on the principal repayment change in the second year?
After making payments of $901.10 for 8 years on your 30 year loan at 8.3%, you decide to sell your home. What is the loan payoff?

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