Use your financial calculator to compute the monthly payments for a vehicle that
ID: 2790654 • Letter: U
Question
Use your financial calculator to compute the monthly payments for a vehicle that costs $18,100 if you financed the entire purchase over four years at an annual interest rate of 7.25 percent. Also calculate the loan payments assuming rates of 6.25 percent and 8.25 percent. Compare the total amount spent on the vehicle under each assumption.
Question 1- The monthly payments for a vehicle that costs $18,100 if you financed the entire purchase over four years at an annual interest rate of 7.25 percent is ?$ Round to the nearest cent.) complete all six qestions.
Monthly Installment Loan Tables ($1,000 loan ith interest payments compounded monthly) i 6 12 18 24 30 36 48 60 72 84 96 7.25% 170.21 86.64 58.80 44.89 36.55 30.99 24.06 19.92 17.17 15.22 13.76 6.25% 169.72 86.18 58.34 44.43 36.09 30.54 23.60 19.45 16.69 14.73 13.26 8.25% 170.70 87.10 59.25 45.34 37.00 31.45 24.53 20.40 17.66 15.71 14.26Explanation / Answer
Answer 1.
Cost of Vehicle = $18,100
Annual Interest Rate = 7.25%
Period of Loan = 4 years or 48 months
Monthly Installment for a loan of $1,000 if interest rate is 7.25% and n is 48 = 24.06
Monthly Installment = 24.06 * $18,100 / $1,000
Monthly Installment = $435.49
Total Amount spent = $435.49 * 48
Total Amount spent = $20,903.52
Answer 2.
Cost of Vehicle = $18,100
Annual Interest Rate = 6.25%
Period of Loan = 4 years or 48 months
Monthly Installment for a loan of $1,000 if interest rate is 6.25% and n is 48 = 23.60
Monthly Installment = 23.60 * $18,100 / $1,000
Monthly Installment = $427.16
Total Amount spent = $427.16 * 48
Total Amount spent = $20,503.68
Answer 3.
Cost of Vehicle = $18,100
Annual Interest Rate = 8.25%
Period of Loan = 4 years or 48 months
Monthly Installment for a loan of $1,000 if interest rate is 8.25% and n is 48 = 24.53
Monthly Installment = 24.53 * $18,100 / $1,000
Monthly Installment = $443.99
Total Amount spent = $443.99 * 48
Total Amount spent = $21,311.52
So, loan should be borrowed on annual interest rate of 6.25%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.