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Part 4: You have been working for 2 years at the job used tó čřeate your car need major repairs for $5000. You want to compare your options.

Part 4: You have been working for 2 years at the job used tó čřeate your car need major repairs for $5000. You want to compare your options.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I'm stuck on C. I don't know which formula to use. 

**Part 4:** You have been working for 2 years at the job used to create your initial budget. Your car needs major repairs for $5000. You want to compare your options. A. Find the price of 2 vehicles (one new and one used) that you could purchase. Include year, make, and model of each vehicle. List source on work. B. What down payment could you make based on your budget for the past two years? C. What would the payments be if you received a 5-year car loan for each vehicle? Assume the APR for the loan is 2.5%. You must show the calculations for this part even if you could pay for the car from savings.
Transcribed Image Text:**Part 4:** You have been working for 2 years at the job used to create your initial budget. Your car needs major repairs for $5000. You want to compare your options. A. Find the price of 2 vehicles (one new and one used) that you could purchase. Include year, make, and model of each vehicle. List source on work. B. What down payment could you make based on your budget for the past two years? C. What would the payments be if you received a 5-year car loan for each vehicle? Assume the APR for the loan is 2.5%. You must show the calculations for this part even if you could pay for the car from savings.
### Financial Decision-Making: Car Purchase Options **Options:** **1. First Car (Used)** - Model: Certified 2017 Hyundai Elantra SE Sedan - Price: $11,745 **2. Second Car (New)** - Model: New 2020 Toyota Camry XLE - Price: $28,711 **Additional Information:** **3. Down Payment** - The down payment I can afford, based on my budget for the past two years, is $12,000.
Transcribed Image Text:### Financial Decision-Making: Car Purchase Options **Options:** **1. First Car (Used)** - Model: Certified 2017 Hyundai Elantra SE Sedan - Price: $11,745 **2. Second Car (New)** - Model: New 2020 Toyota Camry XLE - Price: $28,711 **Additional Information:** **3. Down Payment** - The down payment I can afford, based on my budget for the past two years, is $12,000.
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