Billy Bob would like to purchase a new truck. The salesman has given BB 2 options for financing his truck. He can finance the $30,000 loan at 0% for 60 months, or he can receive a rebate amount and finance with his bank. He will apply the $2000 rebate and finance the difference if he finances with his bank. His bank is offering a rate of 5% for a 60 month loan. a) What is Billy Bob's payment if he takes the dealer's 0% offer? b) What is Billy Bob's payment if he applies the rebate to reduce the loan amount and finances with his bank? Loan amount; 28000. Rate & term; 0,05. 60 c) What recommendation would you make to Billy Bob? d)Would your recommendation change if BB said he was going to try and pay the loan off within 1 year? If so, how so?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Billy Bob would like to purchase a new truck. The salesman has given BB 2 options for financing his truck. He can finance the $30,000 loan at 0% for 60 months, or he can receive a rebate amount and finance with his bank. He will apply the $2000 rebate and finance the difference if he finances with his bank. His bank is offering a rate of 5% for a 60 month loan.
a) What is Billy Bob's payment if he takes the dealer's 0% offer?
b) What is Billy Bob's payment if he applies the rebate to reduce the loan amount and finances with his bank? Loan amount; 28000. Rate & term; 0,05. 60
c) What recommendation would you make to Billy Bob?
d)Would your recommendation change if BB said he was going to try and pay the loan off within 1 year? If so, how so?
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