Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14,900. He put $2,300 down and financed the rest with a 48-month, 7.5% loan. What is his monthly car payment by table lookup? (Use Table 14.2)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14,900. He put $2,300 down and financed the rest with a 48-month, 7.5% loan. What is his monthly car payment by table lookup? (Use Table 14.2) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Monthly Payment  
TABLE
14.2
Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan)
Terms in
months
7.50%
8%
8.50%
9%
10.00%
10.50%
11.00%
11.50%
12.00%
$170.34
$170.58
$170.83
$171.20
$171.56
$171.81
$172.05
$172.30
$172.55
12
86.76
86.99
87.22
87.46
87.92
88.15
88.38
88.62
88.85
18
58.92
59.15
59.37
59.60
60.06
60.29
60.52
60.75
60.98
24
45.00
45.23
45.46
45.69
46.14
46.38
46.61
46.84
47.07
30
36.66
36.89
37,12
37.35
37.81
38.04
38.28
38.51
38.75
36
31.11
31.34
31.57
31.80
32.27
32.50
32.74
32.98
33.21
42
27.15
27.38
27.62
27.85
28.32
28.55
28.79
29.03
29.28
48
24.18
24.42
24.65
24.77
25.36
25.60
25.85
26.09
26.33
54
21.88
22.12
22.36
22.59
23.07
23.32
23.56
23.81
24.06
60
20.04
20.28
20.52
20.76
21.25
21.49
21.74
21.99
22.24
TABLE 14.2
(concluded)
Terms in
months
12.50%
13.00%
13.50%
14.00%
14.50%
15.00%
15.50%
16.00%
6.
$172.80
$173.04
$173.29
$173.54
$173.79
$174.03
$174.28
$174.53
12
89.08
89.32
89.55
89.79
90.02
90.26
90.49
90.73
18
61.21
61.45
61.68
61.92
62.15
62.38
62.62
62.86
24
47.31
47.54
47.78
48.01
48.25
48.49
48.72
48.96
30
38.98
39.22
39.46
39.70
39.94
40.18
40.42
40.66
36
33.45
33.69
33.94
34.18
34.42
34.67
34.91
35.16
42
29.52
29.76
30.01
30.25
30.50
30.75
31.00
31.25
48
26.58
26.83
27.08
27.33
27.58
27.83
28.08
28.34
54
24.31
24.56
24.81
25.06
25.32
25.58
25.84
26.10
60
22.50
22.75
23.01
23.27
23.53
23.79
24.05
24.32
6.
Transcribed Image Text:TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8% 8.50% 9% 10.00% 10.50% 11.00% 11.50% 12.00% $170.34 $170.58 $170.83 $171.20 $171.56 $171.81 $172.05 $172.30 $172.55 12 86.76 86.99 87.22 87.46 87.92 88.15 88.38 88.62 88.85 18 58.92 59.15 59.37 59.60 60.06 60.29 60.52 60.75 60.98 24 45.00 45.23 45.46 45.69 46.14 46.38 46.61 46.84 47.07 30 36.66 36.89 37,12 37.35 37.81 38.04 38.28 38.51 38.75 36 31.11 31.34 31.57 31.80 32.27 32.50 32.74 32.98 33.21 42 27.15 27.38 27.62 27.85 28.32 28.55 28.79 29.03 29.28 48 24.18 24.42 24.65 24.77 25.36 25.60 25.85 26.09 26.33 54 21.88 22.12 22.36 22.59 23.07 23.32 23.56 23.81 24.06 60 20.04 20.28 20.52 20.76 21.25 21.49 21.74 21.99 22.24 TABLE 14.2 (concluded) Terms in months 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 6. $172.80 $173.04 $173.29 $173.54 $173.79 $174.03 $174.28 $174.53 12 89.08 89.32 89.55 89.79 90.02 90.26 90.49 90.73 18 61.21 61.45 61.68 61.92 62.15 62.38 62.62 62.86 24 47.31 47.54 47.78 48.01 48.25 48.49 48.72 48.96 30 38.98 39.22 39.46 39.70 39.94 40.18 40.42 40.66 36 33.45 33.69 33.94 34.18 34.42 34.67 34.91 35.16 42 29.52 29.76 30.01 30.25 30.50 30.75 31.00 31.25 48 26.58 26.83 27.08 27.33 27.58 27.83 28.08 28.34 54 24.31 24.56 24.81 25.06 25.32 25.58 25.84 26.10 60 22.50 22.75 23.01 23.27 23.53 23.79 24.05 24.32 6.
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