The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7year compounded monthly. (Round your answers to the nearest cent.) (a) What monthiy payment will she be required to make if the car is financed over a period of 24 months? Over a period of 72 months? 24 months $ 1074.54 72 months (b) What will the interest charges be it she elects the 24-month plant The 72-month plan? 24-month plan $ 2679 72-month plan

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
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The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7year
compounded monthly. (Round your answers to the nearest cent.)
(a) What monthily payment will she be required to make if the car is financed over a period of 24 months? Over a period of 72 months?
24 months $ 1074.54
72 months
(b) What will the interest charges be if she elects the 24-month plant The 72-month plan?
24-month plan $ 2670
72-month pian
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Transcribed Image Text:The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7year compounded monthly. (Round your answers to the nearest cent.) (a) What monthily payment will she be required to make if the car is financed over a period of 24 months? Over a period of 72 months? 24 months $ 1074.54 72 months (b) What will the interest charges be if she elects the 24-month plant The 72-month plan? 24-month plan $ 2670 72-month pian Need Help?
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