Question: On September 1 , 2 0 1 8 , Susan Chao bought a motorcycle for $ 3 8 , 0 0 0 . She paid

On September 1,2018, Susan Chao bought a motorcycle for $38,000. She paid $1,200 down and financed the balance with a five-year loan at an annual percentage rate of 8 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1,2018). Two years later, at the end of October 2020, Susan got a new job and decided to pay off the loan.
If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1,2020?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

All students in the College of Business at State University are required to take a capstone course, Management 4394, the last semester of their senior year. This course consists primarily of a...

Q:

On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 3 4 , 0 0 0 . She paid $ 1 , 1 0 0 down and financed the balance with a five - year loan at an annual percentage rateof 7 . 6...

Q:

Q1Simple Interest versus Compound Interest [LO1]First City Bank pays 8 per cent simple interest on its savings account balances, whereas Second City Bank pays 8 per cent interest compounded annually....

Q:

On September 1,2018 , Susan Chao bought a motorcycle for $39,000. She paid $1,000 down and financed the balance with a five-year loan at an annual percentage rate of 8.1 percent compounded monthly....

Q:

On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 3 8 , 0 0 0 . She paid $ 1 , 2 0 0 down and financed the balance with a five - year loan at an annual percentage rate of 8 percent...

Q:

Please explain the steps for the solution Please explain the steps for the solution Please explain the steps for the solution On September 1,2021 , Susan Chao bought a motorcycle for $22,000. She...

Q:

On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 2 0 , 0 0 0 . She paid $ 1 , 2 0 0 down and financed the balance with a five - year loan at an annual percentage rate of 6 . 2 percent...

Q:

On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 3 6 , 0 0 0 . She paid $ 1 , 0 0 0 down and financed the balance with a five - year loan at an annual percentage rate of 7 . 8 percent...

Q:

Problem 4 - 5 6 Balloon Payments On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 2 4 , 0 0 0 . She paid $ 1 , 1 0 0 . down and financed the balance with a five - year loan at an...

Q:

Problem 4 - 5 6 Balloon Payments On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 3 2 , 0 0 0 . She paid $ 1 , 2 0 0 down and financed the balance with a five - year loan at an annual...

Q:

On September 1 , 2 0 2 1 , Susan Chao bought a motorcycle for $ 3 2 , 0 0 0 . She paid $ 1 , 2 0 0 down and financed the balance with a five - year loan at an annual percentage rate of 7 . 4 percent...

Q:

On January 1, 2014, TCU Utilities issued $1,000,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 10 percent and pay interest on June 30 and December 31 each year. When...

Q:

Let C and D be m n matrices, and let B = (v1, v2, ..., vn) be a basis for a vector V. Show that if C[x]B = D[x]B for all x in V, then C = D.

Q:

Nonbank residential lenders are regulated by the federal government. True False

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Q:

True or false? According to the Grossman model, if a new drug were discovered that eliminated the steady deterioration of health that accompanies aging but does not eliminate sudden events like...

Q:

hours a week, who will have greater H?Why? b If both individuals work enough hours so as to earn exactly $50,000 per year, who will have greater H?Why? c Draw a set of axes labeled TW and TZ that...

Q:

Differences in wage levels. Suppose individual A received a much better education than individual B, and consequently earns twice as much per hour of labor. a If both individuals work