I would like to buy a Cessna Citation M2 private jet, which costs $4,700,000. I am going to get a loan to make this purchase but I won't agree to any terms that force me to spend more than $1,000,000 in interest over the life of the loan (I am simultaneously very wealthy yet also a bit of a penny pincher). I am approved for an eight year aviation finance loan at 6.4% APR, compounded monthly. I am fine with any monthly payment amount. Rounded to the nearest dollar, how large of a down payment should I make so that I can purchase this jet under acceptable terms? $1,340,283 None of these $985,284 $1,133,125
I would like to buy a Cessna Citation M2 private jet, which costs $4,700,000. I am going to get a loan to make this purchase but I won't agree to any terms that force me to spend more than $1,000,000 in interest over the life of the loan (I am simultaneously very wealthy yet also a bit of a penny pincher). I am approved for an eight year aviation finance loan at 6.4% APR, compounded monthly. I am fine with any monthly payment amount. Rounded to the nearest dollar, how large of a down payment should I make so that I can purchase this jet under acceptable terms? $1,340,283 None of these $985,284 $1,133,125
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![I would like to buy a Cessna Citation M2 private jet, which costs $4,700,000. I am
going to get a loan to make this purchase but I won't agree to any terms that force
me to spend more than $1,000,000 in interest over the life of the loan (I am
simultaneously very wealthy yet also a bit of a penny pincher). I am approved for an
eight year aviation finance loan at 6.4% APR, compounded monthly. I am fine with
any monthly payment amount. Rounded to the nearest dollar, how large of a down
payment should I make so that I can purchase this jet under acceptable terms?
$1,340,283
None of these
$985,284
$1,133,125](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02dcef65-ae0f-4f2e-93a2-de35ab06b7f8%2F8d28fbb3-2f9c-455a-aab0-cf57cacaf6cb%2F4iztv5w_processed.png&w=3840&q=75)
Transcribed Image Text:I would like to buy a Cessna Citation M2 private jet, which costs $4,700,000. I am
going to get a loan to make this purchase but I won't agree to any terms that force
me to spend more than $1,000,000 in interest over the life of the loan (I am
simultaneously very wealthy yet also a bit of a penny pincher). I am approved for an
eight year aviation finance loan at 6.4% APR, compounded monthly. I am fine with
any monthly payment amount. Rounded to the nearest dollar, how large of a down
payment should I make so that I can purchase this jet under acceptable terms?
$1,340,283
None of these
$985,284
$1,133,125
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