You want to buy a new sports coupe for $81,500, and the finance office at the dealershiphas quoted you an APR of 6.3 percent for a 60 month loan to buy the car.a. What will your monthly payments be? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)b. What is the effective annual rate on this loan? (Do not round intermediatecalculations. Enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)a. Monthly paymentncesb. Effective annual rateMcGrawHinPrey6 of 12Next >144408.Y UOPWERCO

Answered: You want to buy a new sports coupe for…

You want to buy a new sports coupe for $81,500, and the finance office at the dealership has quoted you an APR of 6.3 percent for a 60 month loan to buy the car.

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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For the car loan described, give the following information. A car dealer will sell you the $30,350 car of your dreams for $6,000 down and payments of $669.06 per month for 60 months. (a) amount to be paid $ (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) % (d) APR (rounded to the nearest tenth of a percent)
You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have an 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months. The rebate offer is $1900, and you can obtain a car loan at your local bank for the balance at 2.03% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $ _______ . Round to the nearest dollar.
You are looking to buy a car and can afford to pay $195 per month. If the interest rate on a car loan is 0.74% per month for a 60-month loan, what is the most expensive car you can afford to buy? The amount that you can afford is $________________ (Round to the nearest dollar.)
You are looking to buy a car that costs $30,000. Your payment is $400/month for 60 months. If you want to know your interest rate on this loan, you can use Excel. Excel returns a RATE of 0.70%. What is your APR? 8.45% 2.75% 3.24% 0.70%
You are going to purchase a new pick-up truck and decided to take a conventional vehicle loan in the amount of $60,175. You plan to finance the entire amount from a local bank. You plan to obtain a loan for 6 years and you were told the interest rate is 4.5% per year. Determine the monthly payments that you would make for the loan.
Suppose you are in the market for a new car worth $18,000. You are offered a deal fo make a S1,800 down payment now and to pay the balance in equal end-of-month payments of $421.85 over a 48-month period. Consider the following situations:a.Instead of going through the dealer's financing, you want to make a down payment of $1,800 and take out an auto loan from a bank at 11.75% compounded monthly. What would be your monthly payment to pay off the loan in four years?b. If you were to accept the dealers offer, what would be the effective rate of interest per month charged by the dealer on your financing?
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months: Use this information for the questions below. Use the Buying a Car information above to answer this question. You want to make monthly payments of $449, but you don't want a car loan over your head for more than 48 months, so you decide to go with the down payment option. How much of a down payment do you need to make? $_____ . Round to the nearest dollar
You want to buy a new sports coupe for $87,500, and the finance office at the dealership has quoted you an APR of 6.9 percent for a 48-month loan to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly payment b. Effective annual rate %
You are in the process of getting a new car but are not sure if you should buy or lease. The total cost of the car is $21,000, and you have a $275 monthly spend budget for payments. If you lease the car, the terms of the lease will be forty-eight months at an APR of 2.25%. The residual value of the car is $8,000. If you buy the car, a bank will offer an APR of 2.70% and seven years to repay the loan. You are not required to make a down payment with either the lease or loan options, and payments are made at the end of the month for both options. Should you lease or buy the car given your budget limit of $275 a month? Create a new workbook that shows the difference between leasing and buying the car in terms of monthly payments.
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months: Suppose you make a down payment of 10% of $27,600 and finance the rest at 1.5% compounded monthly for 48 months. How much interest do you pay over the life of the loan? $ ________ . Round to the nearest dollar. You want to make monthly payments of $431, but you don't want a car loan over your head for more than 48 months, so you decide to go with the down payment option. How much of a down payment do you need to make? $ ________. Round to the nearest dollar.
Help me with step by step answers on a TI 83, TVM solver and forumulas and timelines. You want to buy a car and need to see how big of a car loan you can afford. Your budget allows you allocate $289.99 per month for car loan payments. The bank will offer you a loan at 6% interest on an APR basis and monthly payments over five years. What is the amount of the loan you can afford? Use the $ symbol and round to the nearest dollar (no decimal places). Use commas in your answer if applicable.