In order to make some home improvements, a home owner spent $24,000. He paid 18% as a down payment and financed the balance of the purchase with a 36-month fixed installment loan with an APR of 4.5%. Determine the home owner's total finance charge and monthly payment
% Financed = 100% - 18% = 82%.
Amt. Financed = $24,000 * 0.82 = $19,680.
Pt = Po*r*t / (1 - (1+r)^-t).
r = 4.5% / 12 = 0.375% = 0.00375 = Monthly % rate expressed as a decimal.
Pt=(19680*0.00375*36)/(1-(1.00375)^-36,
Pt=2656.80 / 0.126063452 = $21,075.10.
Int.=Pt - Po=21075.10 - 19680=$1395.10
Monthly Payments=21,075.10 / 36 = $585.42.
Mrs biftu has been working in university as network administrator for four years last year biftu received a 4% raise which brought her current weekly pay to 9000ETB biftu is scheduled to receive a 3% raise next week she wants you to write an algorithm that will display the amount of her new weekly pay.
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The price of a home is $102,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 9.5%.
In order to make some home
improvements, a homeowner had to borrow
$20,400. He financed the amount of the
purchase with a 36-month fixed loan with an
APR of 4.5%. Determine the homeowner’s
monthly payment.
A. $537.94
B. $567.06
C. $606.84
D. $6,851.06
In order to make some home
improvements, a homeowner had to borrow
$20,400. He financed the amount of the
purchase with a 36-month fixed loan with an
APR of 4.5%. Determine the homeowner’s
monthly payment.
A. $537.94
B. $567.06
C. $606.84
D. $6,851.06
To find the monthly payment, we can use the formula:
Monthly Payment = [P x r x (1+r)^n] / [(1+r)^n - 1]
where P is the principal amount, r is the monthly interest rate, and n is the total number of payments.
First, let's find the monthly interest rate:
r = APR / 12 = 4.5% / 12 = 0.375%
Next, let's determine the total number of payments:
n = 36 months
Now, we can plug in the values and solve for the monthly payment:
Monthly Payment = [20400 x 0.00375 x (1+0.00375)^36] / [(1+0.00375)^36 - 1] = $606.84
Therefore, the homeowner's monthly payment is $606.84, which is option C.
In order to make some home
improvements, a homeowner had to borrow
$20,400. He financed the amount of the
purchase with a 36-month fixed loan with an
APR of 4.5%. Determine the homeowner’s
monthly payment.
A. $537.94
B. $567.06
C. $606.84
D. $6,851.06
To find the monthly payment, we can use the formula:
Monthly Payment = [P x r x (1+r)^n] / [(1+r)^n - 1]
where P is the principal amount, r is the monthly interest rate, and n is the total number of payments.
First, let's find the monthly interest rate:
r = APR / 12 = 4.5% / 12 = 0.375%
Next, let's determine the total number of payments:
n = 36 months
Now, we can plug in the values and solve for the monthly payment:
Monthly Payment = [20400 x 0.00375 x (1+0.00375)^36] / [(1+0.00375)^36 - 1] = $606.84
Therefore, the homeowner's monthly payment is $606.84, which is option C.