owntown Internet Café is planning to buy a minivan for delivery and pick up. The price of the vehicle is $25,000. purchase this minivan, they have $3,000, as a down payment, the dealer has given them a discount equal to 5% the full price of the vehicle, and for the rest, they need to apply for a loan in order to buy the vehicle. sing the following figures, calculate the monthly payment for the above loan. What is their bi-weekly payment, if they want to explore that option? rice of the Vehicle: own Payment: ealer's Special Discount: $ 25,000.00 $ 3,000.00 5%

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
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Title: First Quarter Forecast with Mini Van Loan

---

Downtown Internet Café is planning to buy a minivan for delivery and pick-up. The price of the vehicle is $25,000. To purchase this minivan, they have $3,000 as a down payment. The dealer has given them a discount equal to 5% of the full price of the vehicle, and for the rest, they need to apply for a loan in order to buy the vehicle.

### Calculation Tasks:
1. **Monthly Payment Calculation:** 
   Using the given financial figures, calculate the monthly payment required for the above loan.
2. **Bi-Weekly Payment Option:**
   Determine what their bi-weekly payment would be if they opt for this payment schedule.

### Financial Details:
- **Price of the Vehicle:** $25,000.00
- **Down Payment:** $3,000.00
- **Dealer’s Special Discount:** 5%
- **Annual Interest Rate:** 4.90%
- **Term of the Loan (Years):** 5

### To Be Computed:
- **Monthly Payment:** [To be computed]
- **Bi-Weekly Payment:** [To be computed] 

Use these figures to calculate and explore different payment options for financing the minivan.
Transcribed Image Text:Title: First Quarter Forecast with Mini Van Loan --- Downtown Internet Café is planning to buy a minivan for delivery and pick-up. The price of the vehicle is $25,000. To purchase this minivan, they have $3,000 as a down payment. The dealer has given them a discount equal to 5% of the full price of the vehicle, and for the rest, they need to apply for a loan in order to buy the vehicle. ### Calculation Tasks: 1. **Monthly Payment Calculation:** Using the given financial figures, calculate the monthly payment required for the above loan. 2. **Bi-Weekly Payment Option:** Determine what their bi-weekly payment would be if they opt for this payment schedule. ### Financial Details: - **Price of the Vehicle:** $25,000.00 - **Down Payment:** $3,000.00 - **Dealer’s Special Discount:** 5% - **Annual Interest Rate:** 4.90% - **Term of the Loan (Years):** 5 ### To Be Computed: - **Monthly Payment:** [To be computed] - **Bi-Weekly Payment:** [To be computed] Use these figures to calculate and explore different payment options for financing the minivan.
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