Joe secured a loan of $10,000 three years ago from a bank for use toward his...

 

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Joe secured a loan of $10,000 three years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 3% / year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 15 yr at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $ DETAILS Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $21,000 at a rate of 7%/ year compounded monthly. Her bank is now charging 11.8% / year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $ savings $ 13. [-/0.05 Points] Submit Answer DETAILS TANAPMATH5 4.3.036. TANAPMATH5 4.3.039. MY NOTES 14. [-/0.05 Points] The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $140,000 and was to amortized in 240 equal monthly installments at an interest rate of 12%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 7%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.) $ PRACTICE ANOTHER MY NOTES PRACTICE ANOTHER Joe secured a loan of $10,000 three years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 3% / year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 15 yr at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $ DETAILS Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $21,000 at a rate of 7%/ year compounded monthly. Her bank is now charging 11.8% / year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $ savings $ 13. [-/0.05 Points] Submit Answer DETAILS TANAPMATH5 4.3.036. TANAPMATH5 4.3.039. MY NOTES 14. [-/0.05 Points] The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $140,000 and was to amortized in 240 equal monthly installments at an interest rate of 12%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 7%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.) $ PRACTICE ANOTHER MY NOTES PRACTICE ANOTHER

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SOLUTION 12 To find the monthly payment we need to use the formula for the present value of an annuity P A x 1 1 rnntrn where P present value of the loan A monthly payment r annual interest rate as a ... View the full answer