Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ross purchased a new commercial vehicle today for

Ross purchased a new commercial vehicle today for $25,000 with a down payment of $3,000. The...

60.1K

Verified Solution

Question

Finance

Ross purchased a new commercial vehicle today for $25,000 with adown payment of $3,000. The amount was financed using a five-yearloan with a 4 percent interest rate (compounded monthly). How muchwill Ross owe on his vehicle loan after making payments for threeyears?

Answer & Explanation Solved by verified expert
3.5 Ratings (270 Votes)
The answer is 933021 Calculations and explanations Here the 1st step is to compute the monthly payments We can do this using the PMT function in excel Type the following syntax PMT412 60 22000 This will yield an amount of 40516 Thus Ross will pay 40516 on a monthly basis Note that 60 5 years 12 months per year and 22000 250003000 The next step is to make an amortization table as    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Ross purchased a new commercial vehicle today for $25,000 with adown payment of $3,000. The amount was financed using a five-yearloan with a 4 percent interest rate (compounded monthly). How muchwill Ross owe on his vehicle loan after making payments for threeyears?

Other questions asked by students

Q

temperature In Maxwell s speed distribution curve on increasing the number of gas molecules having...

Physics
Q

A metal rod of mass m can slide without friction along two parallel horizontal tracks...

Physics
Q

Western Electronics completed these selected transactions during March 2021 i Click the icon to view...

Statistics
Q

20 Let x 3x 9 and g x x 2 a Find the composite function...

Algebra
Q

20 x 7x 5x 40x x 15x 56

Algebra
Q

Exercise 12-14 (Algo) Comparison of Projects Using Net Present Value [LO12-2] Labeau Products, Limited, of...

Accounting
Q

The Town of Weston has a Water Utility Fund with the following trial balance as...

Accounting
Q

Fill in the space to classify each of the following items as belonging in the...

Accounting
Q

A company with an all-cash sales policy has monthly unit sales of 1,200 a month...

Finance
Q

In the following ordinary annuity, the interest is compounded with each payment, and the payment...

Finance
Q

A 20-year, $1000 par value bond has a 5% coupon rate (paid semiannually). If the...

Finance
Q

Patrick takes 2000$ from his brother Jacob and he will pay him the money back...

Finance