ou have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $   Financed for 60 months: $

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A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000…

A: Cost car=$18995Interest rate=4.9%Period= 5 years

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A: Maximum value is the present value of cash flow from the annuity based on the time value of money…

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: We need to use present value formula below to calculate amount required today in account.PV…

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A: Monthly Payment:A "monthly payment" refers to a recurring amount of money that is paid on a monthly…

Q: secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to…

A: Answer : price of new car =$16000 Less : Down payment = $16000*25% = $4000 Amount financed = $16000…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

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

Q: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

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

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

Q: Months Financed Maximum Car Price 48 60 f you finance the car for a shorter period of time, you can…

A: To determine the maximum car price, we need to find the PV of the monthly payment and then add the…

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A: Loan is a financial contract engaging a lender who provides money or assets to a borrower who agrees…

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A: Amortization is the systematic repayment of loan and interest for a decided period of time. Each…

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%

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A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under…

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A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

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…

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

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Q: You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: This can be solved using the concept of present value of an annuity. Annutiy refers to the equal…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

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