You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $400. The loan will have a 11% APR based on end-of-month payments. A. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. B. What is the most expensive car you can afford if you finance it for 60 months?

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A: Car Value = $ 26,635Down payment =$ 7000Loan Amount = Car Value - Down paymentLoan Amount = $ 26,635…

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Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

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A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: You are considering the purchase of a new car. You can afford a payment of $400 per month. You plan…

A: In the given problem we are considering to buy a new car and we want to know how much money we can…

Q: Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved…

A: PMT = (P(r/n)) / (1-(1+(r/n))-nt) Where PMT = Monthly payment P = Principal Amount r = Annual rate…

Q: You just bought a used car for $11,000 with no down payment using dealer financing at 4% APR…

A: Price of the Car is $11,000 APR is 4% compounded monthly Monthly payment is $300   To Find:- Time…

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A: The time value of money is a concept in finance that considers the effect of compounding into…

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A: In this we need to calculate present value factor and get monthly payment.

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Financed for 48 months: $17,267.77Financed for 60 months: $19,621.38

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A: Given,  Amount saved for Down payment is $5000 Amount of monthly payment is $500 Rate is 6%

Q: Finally, you have decided to buy a car. You are able to negotiate the price down to $12,000. You…

A: given, r = 2.5% n = 3 m =12 p =12000 applying formula for monthly payment:…

Q: What does this tell you about total cost when financing for longer periods?

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Q: payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 me…

A: The monthly payment consist of payment of principal and interest to be paid over the life of…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

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A: Monthly payment is calculated by pmt formula in excel.

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A: Cost of car=$11999 Down payment =5500 monthly payment =250 interest rate =7%

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A: Compound = n = Monthly = 12Present Value = pv = $77,500Interest rate = r = 5.9 / 12Time = t = 48

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A: Price of car = $21,000 Down Payment = $3,500 Time Period = 6 Years Interest rate = 3.6%

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Q: You just got a new part-time job and you need to buy a new car for your job. Suppose you have enough…

A: Variables in the question:PMT=$400Annual interest rate=6%Monthly interest rate=6%/12=0.5%N=5…

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Q: Assume that you wish to trade in your old car and buy a new car. The new car has a list price of…

A: =$12235.13

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A: The idea of figuring out a loan's monthly payment and effective annual rate (EAR) is the foundation…

Q: Suppose that you decide to buy a car for $28,635, including taxes and license fees. You saved $7000…

A: concept. formula to find monthly payment is where , pmt = monthly payment r = interest rate t =…