Knowee
Questions
Features
Study Tools

Wade Ellis buys a new car for $16,515.75. He puts 10% down and obtains a simple interest amortized loan for the rest at 1112% interest for four years. (Round your answers to the nearest cent.)(a) Find his monthly payment.

Question

Wade Ellis buys a new car for $16,515.75. He puts 10% down and obtains a simple interest amortized loan for the rest at 1112% interest for four years. (Round your answers to the nearest cent.)(a) Find his monthly payment.

🧐 Not the exact question you are looking for?Go ask a question

Solution

To find Wade Ellis's monthly payment, we need to follow these steps:

  1. Calculate the down payment: 10% of 16,515.75is16,515.75 is 1,651.58.

  2. Subtract the down payment from the total cost to find the loan amount: 16,515.75−16,515.75 - 1,651.58 = $14,864.17.

  3. Calculate the annual interest: 1112% of 14,864.17is14,864.17 is 165,304.30.

  4. Divide the annual interest by 12 to find the monthly interest: 165,304.30/12=165,304.30 / 12 = 13,775.36.

  5. Multiply the monthly interest by the number of months in the loan term (4 years = 48 months): 13,775.36∗48=13,775.36 * 48 = 661,217.28.

  6. Add the loan amount to the total interest to find the total repayment amount: 14,864.17+14,864.17 + 661,217.28 = $676,081.45.

  7. Divide the total repayment amount by the number of months in the loan term to find the monthly payment: 676,081.45/48=676,081.45 / 48 = 14,085.03.

So, Wade Ellis's monthly payment would be $14,085.03.

Please note that the interest rate of 1112% is extremely high and not typical for a car loan. The calculations are based on this rate, but in reality, the interest rate would likely be much lower.

This problem has been solved

Similar Questions

To help purchase her new car, Jessica is taking out a $23,000 amortized loan for 6 years at 6.1% annual interest. Her monthly payment for this loan is $382.26.Fill in all the blanks in the amortization schedule for the loan. Assume that each month is 112 of a year. Round your answers to the nearest cent.Payment number Interest payment Principal payment New loan balance1 $ $ $2 $ $ $22,467.97⋮ ⋮ ⋮ ⋮35 $66.99 $315.27 $12,863.6936 $ $ $

Jackson decided to take out a car loan for the next three years. The car is selling at $36,000 with a down payment of $10,000. The car dealership provides Jackson with the option of repaying the loan in equal instalments at the end of each month, at an interest rate of 24% p.a. compounding monthly. Calculate the amount of money Jackson needs to pay each month and round your answer to 2 decimal places.

The following loan is a simple interest amortized loan with monthly payments. (Round your answers to the nearest cent.)$6000, 812%, 4 years

An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:

Deandre borrowed money from an online lending company to buy a camper.He took out a personal, amortized loan for $18,000, at an interest rate of 5.2%, with monthly payments for a term of 4 years.For each part, do not round any intermediate computations and round your final answers to the nearest cent.If necessary, refer to the list of financial formulas.(a) Find Deandre's monthly payment.$(b) If Deandre pays the monthly payment each month for the full term, find his total amount to repay the loan.$(c) If Deandre pays the monthly payment each month for the full term, find the total amount of interest he will pay.$

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.