1. A Volvo car dealer wishes to sell a 1995 Volvo 740 GLE to a customer for $10,000.00 which includes the sales tax. The customer can only make a down payment of 20% of the total cost of the car at the time of the sale. The customer has gone to his bank to finance the rest of the purchases. The bank charges 14% annual interest rate on all car notes to its customers. If the bank requires this customer to pay a monthly car note of $222.40 find: a. The number of months required for the customer to pay off the car loan. (Hint: The months must be an integer number). b. The amount required to pay off the loan at the end of the 8th month.

1. A Volvo car dealer wishes to sell a 1995 Volvo 740 GLE to a customer for $10,000.00 which includes the sales tax. The customer can only make a down payment of 20% of the total cost of the car at the time of the sale. The customer has gone to his bank to finance the rest of the purchases. The bank charges 14% annual interest rate on all car notes to its customers. If the bank requires this customer to pay a monthly car note of $222.40 find: a. The number of months required for the customer to pay off the car loan. (Hint: The months must be an integer number). b. The amount required to pay off the loan at the end of the 8th month.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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