Finance Questions

Archive for the ‘Finance Calculations’ Category

Question: I Need some Math help?

Wade Ellis buys a new car for $16,113.82. He puts 10% down and obtains a simple interest amortized loan for the balance at 11 and 1/2 % interest for four years. If loan fees included in the Finance Charge total $814.14, find the APR. (Use your graphing calculator. Round the answer to one decimal place.)

Answer: The principal on the car left to be paid off will be 90% of the new car price:
(0.9)(16,113.82) = 14502.44

The total amount Wade will have to repay on the loan will be this principal + the interest on it over a 4-year period + the Finance Charge:
14502.44 + (0.115)(4)(14502.44) + 814.14 = 21987.70

The APR:
21987.70 = 14502.44(1 + i)^4
(21987.70/14502.44)^(1/4) = 1 + i
i = .01096 or 11.0%

Finance Application for Monthly Payments on the Graphing Calculator

Question: I need car help!!! I'm so confused with online site!!?

Ok. I'm doing a budget project for school and I have to have the monthly payments on a car. I chose a Honda Element and I'm on the site looking at it. Now I'm to the point where it talks about finance stuff. Can someone please answer these questions?? : (please answer at least one! but you'll get 10 Pts if you answer all!! )

Answer: additional Payment: is when u put down an extra amount, on top of what u already payed

Trade-in : is when u have a vehicle and your want a newer one they, give you the value of your old car and take of that from the new car...

Annual Percentage Rate: is the percentage your interest is based on

Term: is how many months you have payments on like 24 months 48 months

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