Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 05, 2024

a man borrows $33,950 to purchase a car. he agrees to make payments of $4000 at the end of every 6 months. if the interest

a man borrows $33,950 to purchase a car. he agrees to make payments of $4000 at the end of every 6 months. if the interest rate is 10.6% compounded semiannually. show formula used

a. how many regular payments of $4000 are necessary to pay off the loan?

b. What is the size of the payment made 1 month after the last regular payment?

c. how much of the last payment goes for (i) principle (ii) interest?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE International Financial Management

Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun

9th International Edition

1260575314, 9781260575316

More Books

Students also viewed these Finance questions

Question

★★★★★

Determine the mean and standard deviation of the variable X in each of the following binomial distributions: a. n = 4 and = 0.10 b. n = 4 and = 0.40 c. n = 5 and = 0.80 d. n = 3 and = 0.50

Answered: 1 week ago

Question

★★★★★

The disk rotates about a fixed axis through O with angular velocity w = 5 rad/s and angular acceleration a = 3 rad/s 2 at the instant represented, in the directions shown. The slider A moves in the...

Answered: 1 week ago

Question

★★★★★

What criteria do you use in deciding to offer a contract? a. How important are the artists age, sex, or ethnicity?

Answered: 1 week ago

Question

★★★★★

The company arranged a line of credit for $500,000 on January 1. The commitment fee is 0.05% (five one-hundredths of 1%) of the total credit line. In addition, the company must pay interest of 5.9%...

Answered: 1 week ago

Question

★★★★★

a man borrows $33,950 to purchase a car. he agrees to make payments of $4000 at the end of every 6 months. if the interest rate is 10.6% compounded semiannually. show formula used a. how many regular...

Answered: 1 week ago

Question

★★★★★

Part II Rock Type The strength of a rock or its resistance to erosion is determined by its type. Sedimentary rock is cemented together with some forms being more resistant then others depending on...

Answered: 1 week ago

Question

★★★★★

The computer lab at UC Riverside has a help desk to assist students working on computer spreadsheet assignments. The students patiently form a single line in front of the desk to wait for help....

Answered: 1 week ago

Question

★★★★★

Solve for x: 2(3x 1)2(x + 5) = 12

Answered: 1 week ago

Question

★★★★★

Based on the US system of units, match the formula to the correct units and/or dimensions Mass m lb-ft^2/s^2 Force F ft-lbf/s Energy E = F.x lb-ft/s13 Power P = E/t lb or slugs

Answered: 1 week ago

Question

★★★★★

Nadia has set up the structure for an amortization schedule in the range H4:L15. Finish the amortization schedule by completing the formula in cell J5, which already contains an IF function that...

Answered: 1 week ago

Question

★★★★★

What is the main problem with using a market test as a forecasting tool? Difficult to interpret O Expensive Inaccurate Unacceptable to consumers Overused

Answered: 1 week ago

Previous Question Next Question