3 years ago

What happens if you pay off an installment loan early?

Business

2 answers:

Dmitry_Shevchenko [17]3 years ago

8 0

Answer:

the prepayment fee is wrong

Explanation:

it is probably B

choli [55]3 years ago

7 0

You'll incur a prepayment fee

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You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an apr of 6.6 percent fo

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Answer: The monthly payment will be $2007.81.

We have:

Cost of the sports coupe (PV) $84,500

Annual Percentage Rate (APR) 6.6%

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We can find the monthly payment by using the Present value of an annuity formula:

$\mathbf{PV_{Annuity}= PMT * \left ( \frac{1-(1+r)^{-n}}{r} \right )}$

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$\mathbf{84500 = PMT * \left ( \frac{1-0.768529253}{0.0055} \right )}$

$\mathbf{84500 = PMT * \left ( \frac{0.231470747}{0.0055} \right )}$

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3 years ago

Compute the yield to maturity of a $100 face value zero-coupon bond that matures in exactly one year and has a current market pr

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Answer:

Yield to maturity is 1.51%

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Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.

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Year to mature = n = 1 year

Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]

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