Recently you purchased a nice car for $52,000 on January 1, 20x1. The dealer asked you...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Recently you purchased a nice car for $52,000 on January 1, 20x1. The dealer asked you to pay $2000 down and offered you financing for the remaining. The condition of the financing was as follows: 1. Total period was 7 years. 2. Interest rate is 4.9% 3. Your payment should be at the end of each month. Required to calculate your monthly payments using the appropriate time value of money formula provided for you below. Do not use any other method such as Excel present value function as it would has zero value for this project. You must prepare the following schedule in Excel and fill in the numbers. Make sure DO NOT type the numbers and rather transfer the cells. # of Period in years # of period in months Interest rate per year Interest rate per month Principle of the loan Annuity (monthly payment) Schedule of Loan Amortization 222221 ? ? ? Please Note: again, for calculation of the Annuity, you must use the appropriate Time Value of Money Formula provided below: Time Value of Money Formulas: Future Value of a single sum >> FV=PV (1+i) Present Value of a single sum >> PV=FV (1+i)- Future Value of an ordinary annuity >> Present Value of an ordinary annuity >> Present Value of an annuity due >> Present Value of perpetual Annuity >> Fundamental Variables i-Interest rate per period (month) n-Number of time periods (months) FV-Future value PV - Present value A-Annuity (mortgage) FVA (((1+i) -1)/i) PV, A((1-(1/(1+i)))/i)) PVA (1+((1-1/(1+i)~)/i)) PVP. = A/i Schedule of Mortgage payments Period 1/1/X1 1/30/X1 Payments ----- Interest Principle ---- Balance $50,000 Total ? ? ? ? Answer the following Questions: 1. Your total payment including $2,000 down payments: 2. Your total payment excluding down paymens: 3. Your total interest expense for the first year: 4. Your total interest Expense over 7-year period: 5. Total cost of the car that you purchased: Recently you purchased a nice car for $52,000 on January 1, 20x1. The dealer asked you to pay $2000 down and offered you financing for the remaining. The condition of the financing was as follows: 1. Total period was 7 years. 2. Interest rate is 4.9% 3. Your payment should be at the end of each month. Required to calculate your monthly payments using the appropriate time value of money formula provided for you below. Do not use any other method such as Excel present value function as it would has zero value for this project. You must prepare the following schedule in Excel and fill in the numbers. Make sure DO NOT type the numbers and rather transfer the cells. # of Period in years # of period in months Interest rate per year Interest rate per month Principle of the loan Annuity (monthly payment) Schedule of Loan Amortization 222221 ? ? ? Please Note: again, for calculation of the Annuity, you must use the appropriate Time Value of Money Formula provided below: Time Value of Money Formulas: Future Value of a single sum >> FV=PV (1+i) Present Value of a single sum >> PV=FV (1+i)- Future Value of an ordinary annuity >> Present Value of an ordinary annuity >> Present Value of an annuity due >> Present Value of perpetual Annuity >> Fundamental Variables i-Interest rate per period (month) n-Number of time periods (months) FV-Future value PV - Present value A-Annuity (mortgage) FVA (((1+i) -1)/i) PV, A((1-(1/(1+i)))/i)) PVA (1+((1-1/(1+i)~)/i)) PVP. = A/i Schedule of Mortgage payments Period 1/1/X1 1/30/X1 Payments ----- Interest Principle ---- Balance $50,000 Total ? ? ? ? Answer the following Questions: 1. Your total payment including $2,000 down payments: 2. Your total payment excluding down paymens: 3. Your total interest expense for the first year: 4. Your total interest Expense over 7-year period: 5. Total cost of the car that you purchased:
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Elgin Company has recently introduced budgeting as an integral part of its corporate planning process. An inexperienced member of the accounting staff was given the assignment of constructing a...
-
In the following flowchart, identify the documents, records, and procedures that illustrate the purchasing process in a vouchersystem. USER PURCHASING AGGOUNTING MAILBOOM SNIABBH DPARTMENTS...
-
Find the probability that a randomly selected person has an IQ score higher than 125. Is this an unusual event? Explain. In a standardized IQ test, scores are normally distributed, with a mean score...
-
The income statements that follow are for Loury Hardware Corporation. Required 1. From the information provided, prepare a multistep income statement for 20x7 and 20x8 showing percentages of net...
-
Brown Deer Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2012. The bonds were dated January 1 and pay interest July 1 and January 1. Brown Deer Electric uses the straight-line method to...
-
2 discussion questions - no plagiarism andno more than 1 to 2 paragraphs please. 1.How big a deal is the student loan debt crisis and what can be done to avert it? 2.If there is a large student loan...
-
You are planning to switch your cell phone provider. The Cellular worksheet presents three options for a cell phone plan with the new company. You could choose a pay-as-you-go plan, a traditional...
-
. 1) Using the general journal provided on the next page, prepare the journal entries for Coquitlam Consulting for all of the following events. Assume that Coquitlam Consulting (CC) prepares...
-
Kapangan Manufacturing Company uses a job-order costing system and started the month of October with a zero balance in its finished goods inventory accounts. Job A15 was unfinished at the end of...
-
P g Solve the equation for d d+b d d = Enter your answer as an expression.
-
Differentiate y = sec (1+x)
-
Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet...
-
Starting website for case info: https://www.oyez.org/cases/1964/496 In 1879, Connecticut passed a law that banned the use of any drug, medical device, or other instrument in furthering contraception....
-
B2B buyers typically makes more procurement amount than the B2C market in single transactions
-
Find the inverse, if it exists, for the matrix. -1
-
Labor mix and yield variances The Bloomington Park Department plans to offer free swimming lessons to children under 14 years of age who want them. The manager of the department estimates that 6,000...
-
Material mix and yield variance with shrinkage The Mercantile Solvents Company makes X-Myer-K, a powerful rust remover. The standard material mix calls for 80 gallons of XZ-Ote at $1.25 per gallon...
-
Material and labor variance analysis A plant food, called Flower-Bloom, is made by the Ari F. Horticultural Company. The product is manufactured in 50-ton batches and sold in bulk to another company...
Study smarter with the SolutionInn App