If you give me wrong answer, I will give you UN helpful rate. James wants to purchase a 2017 Porsche 911 for $120,000.Two financing options are available for him:option 1: 6% APR compounded monthly $20, 000 downpayment and 60 equal monthly paymentsoption 2: 5% APR compounded continuously, $10,000down payment and 36 equal monthly payments.What is the monthly payment for each of these financingoptions?

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Answered: James wants to purchase a 2017 Porsche…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 27M

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Tian can afford to put a down payment of $8,000 on a car. He can also afford to make monthly payments of $218.52 at the end of each month for the next five years. If Tian is quoted an annual interest rate of 4.49%, what is the highest price he can afford to pay for a car? Group of answer choices $19,724.14 $11,724.14 $14,118.14 $5,330.13
If I buy a truck at17,000 and plan to finance my purchase with a loan and repay over two years. The dealer offer two options either dealer financing with 0% or a 1700 rebate on the purchase price. If I take the rebate I will get a loan for $15,300 at an apr of 5.5%. What will my monthly payments be if I take the rebate
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Suppose Mary Grace needs to borrow $8,900 for the purchase of a car and is considering two loan options. Loan A is a four-year loan at 7.6% interest while loan B is a seven-year loan at 7.9% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ .The total interest paid for Loan A is $ .Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ .The total interest paid for Loan B is $ .Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Mary Grace will experience if she chooses the lower-cost loan option.Savings = $ Hint: Related FormulaThe loan payment formula for fixed installment loans is given by the…

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