4.Draymondvisits a car dealership looking for a sports car to cruise the city in style. He...

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Finance

4.Draymondvisits a car dealership looking for a sports car tocruise the city in style. He tells thedealership that he can repaya loan at $475per month for the next sixyears. If thedealership’sbankis charging customers 6.36%(APR), how much would it be willingto lend Draymond?
A. lessthan $28,400
B. more than $28,400 but less than $29,125
C. more than $29,125 but less than $29,850
D. more than $29,850 but lessthan $30,675
E. more than $30,675
5.A small business owner visits her bank to ask for a loan. Theowner states that she can repay a loan at $2,500 per month for thenext threeyears and then $3,000 per month for another twoyearsafterthat.If the bank ischarging customers 7.56%APR, how much wouldit be willing to lendthe business owner?
A. more than $133,625
B. more than $132,750, but less than $133,625
C. more than $131,875, but less than $132,750
D. morethan $131,000, but less than $131,875
E.less than $131,000
14.Howardjust took out a $18,000 loan for hissmall business. Theloan has a threeyearterm and repayment is in the form of threeequalend-of-year payments.The interest rate on the loan is 8.75%peryear.How much principal does Howardpay in the secondpayment?
A.$5,504
B.$5,986
C.$6,235
D.$6,510
E.$7,079

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4.Draymondvisits a car dealership looking for a sports car tocruise the city in style. He tells thedealership that he can repaya loan at $475per month for the next sixyears. If thedealership’sbankis charging customers 6.36%(APR), how much would it be willingto lend Draymond?A. lessthan $28,400B. more than $28,400 but less than $29,125C. more than $29,125 but less than $29,850D. more than $29,850 but lessthan $30,675E. more than $30,6755.A small business owner visits her bank to ask for a loan. Theowner states that she can repay a loan at $2,500 per month for thenext threeyears and then $3,000 per month for another twoyearsafterthat.If the bank ischarging customers 7.56%APR, how much wouldit be willing to lendthe business owner?A. more than $133,625B. more than $132,750, but less than $133,625C. more than $131,875, but less than $132,750D. morethan $131,000, but less than $131,875E.less than $131,00014.Howardjust took out a $18,000 loan for hissmall business. Theloan has a threeyearterm and repayment is in the form of threeequalend-of-year payments.The interest rate on the loan is 8.75%peryear.How much principal does Howardpay in the secondpayment?A.$5,504B.$5,986C.$6,235D.$6,510E.$7,079