An automobile loan of $15,000 at a nominal rate of 9% compounded monthly for 36 months requires

Question:

An automobile loan of $15,000 at a nominal rate of 9% compounded monthly for 36 months requires equal end€of€month payments of $477. Complete the following table for the first six payments as you would expect a bank to calculate the values:

Repayment of Principal Remaining Loan End of Interest Month (n) Payment Balance $14,635.50 1 $367.23 $369.99 3 $104.24 4

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

See More Books

Question Posted: Nov 12, 2018 11:35 AM

See More Questions

Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. If the borrower wants to pay off the remaining balance on the mortgage after making the 12th payment, what is the...
Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. If the borrower pays an additional $100 with each payment, how fast will the mortgage be paid off?
Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. An S&L issues this mortgage on April 1 and retains the mortgage in its portfolio. However, by April 2 mortgage rates have...
As a brand manager, for a product of your choice, develop a strategy for launching the product in a manner most likely to capture the attention of the product's primary target market. Write a...
Give some everyday examples of situations in which friction is beneficial.
Excessive cost if often perceived as a disadvantage of implementing: a. Activity-based costing. b. Zero-based budgeting. c. Both a and b. d. Neither a nor b.
The purpose of this exercise is to show that the claim of the gross return pure expectation hypothesis is inconsistent with interest rate uncertainty. In the following we consider time points t0 < t1...
On December 31, 2012, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-internet-bearing note. The note was issued to yield 10% interest. Unfortunately, during 2012,...
Which of the following is an example of an exempt organization that may be subject to unrelated business income tax? A college bookstore that sells collegiate branded apparel, books, gifts, and other...
Following the acquisition of Kraft during Year 8, the Philip Morris Companies released its Year 8 financial statements. The Year 8 financial statements and other data are reproduced on the next page....
You borrow $150,000 with a 30year payback term and a variable APR that starts at 9% and can be changed every five years. (a) What is the initial monthly payment? (b) If, at the end of five years, the...
Suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly. You will pay off the loan over 48 months with equal monthly payments. (a) What is the monthly interest...
Since 1972, the Institute of Management Accountants has been issuing certification for the certified management accountant (CMA). Go to the IMA website at www.imanet.org. What are the two parts of...
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Ramirez Company installs a computerized...
Reproduced below from Farthington Supply s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 3 1 / 2 2...
James A. and Ella R. Polk, ages 70 and 65, respectively, are retired physicians who live at 3319 Taylorcrest Street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and...
Required information [The following information applies to the questions displayed below.] Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna...
The following are the ratings of men by women in an experiment involving speed dating. Use the given data to construct a boxplot and identify the 5-number summary. 3.0 3.5 4.0 4.5 5.5 5.5 6.5 6.5 6.5...
Find the x-intercepts and the zeros of the function. f(x) = 2x 2 - 13x - 7
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
A lift truck priced at $38,000 is acquired by trading in a similar lift truck and paying cash for the remaining balance. Assuming that the trade-in allowance is $9,000 and the book value of the asset...
Consider the following data on an asset: Cost of the asset, I........................... $ 165,000 Useful life, N................................. 5 years Salvage value ,...
A firm is trying to decide whether to keep an item of construction equipment for another year. The firm is using DDB for book purposes, and this is the fourth year of ownership of the equipment,...
For esch of the following Independent tranactiona, determine the minimum amount of net income or loas for tox purposes snd the tsxpsyer to which it applies. 1 An individual purchases a $ 1 0 , 0 0 0...
Suppose a bond has a modified duration of 4. By approximately how much will the bonds value change if interest rates: a. Increase by 50 basis points b. Decrease by 150 basis points c. Increase by 10...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company...

An automobile loan of $15,000 at a nominal rate of 9% compounded monthly for 36 months requires

Question:

Repayment of Principal Remaining Loan End of Interest Month (n) Payment Balance $14,635.50 1 $367.23 $369.99 3 $104.24 4 $101.44 $12,771.58

Step by Step Answer:

Loan repayment schedule A 15000AP 075 36 47700 End of ...View the full answer

Fundamentals of Engineering Economics

Students also viewed these Business questions