Joan borrowed $18,000.00 to buy a car. She repaid $4700.00 three months later and $8300.00 nine months later. After twelve months, she borrowed an additional $5800.00, and repaid $5400.00 after 15 months. She paid the entire balance, including the interest, after 24 months. Interest was 5% compounded monthly for the first year and 4.7% compounded monthly for the remaining time. What was the size of the final payment?

Joan borrowed $18,000.00 to buy a car. She repaid $4700.00 three months later and $8300.00 nine months later. After twelve months, she borrowed an additional $5800.00, and repaid $5400.00 after 15 months. She paid the entire balance, including the interest, after 24 months. Interest was 5% compounded monthly for the first year and 4.7% compounded monthly for the remaining time. What was the size of the final payment?

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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After four years in college, Josie owes $104000 in student loans. The interest rate on the federal loans is 2.2% and the rate on the private bank loans is 4.8%. The total interest she owes for one year was $3,120.00.What is the amount of each loan?
Joan borrowed $20,000.00 to buy a car. She repaid $4800.00 three months later and $9000.00 eight months later. After twelve months, she borrowed an additional $7000.00, and repaid $5800.00 after 15 months. She paid the entire balance, including the interest, after 24 months. Interest was 8% compounded monthly for the first year and 8.3% compounded monthly for the remaining time. What was the size of the final payment? The final payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Gra se
Carie purchased a car for $49,000; she paid $4900 as a down payment and financed the balance amount at 3.5% compounded monthly for 4.5 years. What was the amount of interest charged for the entire loan?
Amanda borrowed $6,095 from her best friend, 11 months later, Amanda repaid her $7,005. Calculate the effective annual interest rate.
Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed the balance over 48 months using a loan with a 12 percent annual nominal rate of interest. What are her monthly payments?
Franki finances a motor home for $44,700 by taking out an installment loan for 36 months. The payments were $1,764.31 per month and the total finance charge was $18,815.16. After 25 months, Franki decided to pay off the loan. After calculating the finance charge rebate, find the loan payoff amount.
Lauren purchased a car for $53,000; she paid $13250 as a down payment and financed the balance amount at 3.1% compounded monthly for 4 years. a) What is the size of payment made at the end of every month to settle the loan? $ b) What was the amount of interest charged for the entire loan?
Jasper purchased a car for 47,500. He paid a 20% down payment and financed the rest at 2.88 % for 6 years. Find the amount of down payment the monthly payment and the total interest jasper will have paid at the end of his loan.
Kathy borrows $10,000 from the bank. For a four year loan, the bank requires annual end of year payments of $3,223.73. The annual interest rate on the loan is
Jennifer Nelson deposited $500 into a savings account earning 3%, compounded semiannually. After 5 years, she took the money and moved it into an account earning 3.8%, compounded quarterly. Four years later she withdrew all the money. How much money was in the account after 9 years?
Elin purchased a used car for $9,500. She wrote a check for $2,000 as a down payment for the car and financed the $7,500 balance. The annual percentage rate (APR) is 3% compounded monthly, and the loan is to be repaid in equal monthly installments over the next three years. Which of the following is most near to Elin's monthly car payment?
Kim deposits $1,000 in a savings account. Four years after the deposit, half the account balance is withdrawn. Then, $2,000 is deposited annually for an 8-year period, with the first deposit occurring 2 years after the withdrawal. The total balance is withdrawn 15 years after the initial deposit. If the account earned interest of 8% compounded annually over the 15-year period, how much was withdrawn at each withdrawal point?

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