Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price and the dealership fee is $525. He has a trade in car valued at $4000 and another $1000 for a down payment. The remainder of the balance is to be financed. There are two options for financing. Option 1: 0% APR for 5 years Option 2: 2.99% APR for 5 years and $1500 cash back a) What is the monthly payment for each option? b) Which is the better deal?

Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price and the dealership fee is $525. He has a trade in car valued at $4000 and another $1000 for a down payment. The remainder of the balance is to be financed. There are two options for financing. Option 1: 0% APR for 5 years Option 2: 2.99% APR for 5 years and $1500 cash back a) What is the monthly payment for each option? b) Which is the better deal?

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

Problem 1PS

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Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $
8)
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.)
Suppose that you decide to buy a car for $60,000, including taxes and license fees. You saved $11,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $4000 off the price of the car, followed by a three-year loan at 7.91%. Incentive does not have a cash rebate, but provides free financing (no interest) over three years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT= The difference in monthly payments between the two offers is $ (Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. O A. Incentive B is the better deal. O B. Incentive A is the better deal. [₁-(1+)"]]
A. If i buy a car from a dealership for $27000 with 2.5% paying monthly for a total of 3 years how much will i owe? B. If i buy a car from the dealership with 2% APR for 60 months with sticker price of $30,000 how much will i owe? C. If i buy the car for 10,000 with 10% interest for 6 years how much would it cost. Which option is better?
Suppose that you decide to buy a car for $63,000, including taxes and license fees. You saved $12,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.72%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT= The difference in monthly payments between the two offers is $ (Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. A. Incentive A is the better deal. B. Incentive B is the better deal. PA n nt 1 - ( 1₁ + -/-) - ² n
Jorge is buying a new car for $24,750. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 5% down payment, 4.25% APR for 5 years 10% down payment, 3.25% APR for 4 years
Use the following information to answer the questions. Price of home to purchase- $300,000 Rate- 2.8% (15 year) 3.2% (30 year) Down Payment- $65,000 What would be your monthly payment on a 15 year loan, assuming $2,400 property taxes and $2,400 home insurance?
Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and he uses the discount method. If borrows $40,000 at 9% for 48 months, how much is his monthly payment?
You determine that you can afford $356for a car payment but only want to finance it for 4 years. If current auto rate are 8.11% and TTD will cost $1200. How much can you afford to pay for the car itself?
XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $43, 688. The dealer allows XYZ to trade - in the old truck for $5,224. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3%: How much is the monthly payment?
You wish to buy a $20,000 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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