In: Finance
The original sale price of a car is $22,194.96. The required down payment is $1,410. The monthly payment a customer will pay on the note is $604.36 for a 3-year auto loan with a promotional financing rate at 2.99%? Given that information respond the Following |
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Based on the information from Q48, if a customer decides to skip the 2.99% financing promotion loan but take the cash rebate offer, how much cash does the customer need to pay to buy the new car? We assume that regular market interest rate for auto loan is 6%. |
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Question 50
0 out of 5 points
Based on the information from Q48 and Q49, what’s the amount of cash rebate can the customer receive from the dealer if he decides to pay for the car with all cash instead of applying for the auto loan with the 2.99% low interest rate? |
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Ques a) $21275.92
Ques b) $919
23,167 | 21,276 | ||
Month | Installment | DCF @ 6% | Present value |
0 | 1,410 | 1 | 1,410 |
1 | 604 | 0.995024876 | 601 |
2 | 604 | 0.990074503 | 598 |
3 | 604 | 0.985148759 | 595 |
4 | 604 | 0.980247522 | 592 |
5 | 604 | 0.975370668 | 589 |
6 | 604 | 0.970518078 | 587 |
7 | 604 | 0.96568963 | 584 |
8 | 604 | 0.960885204 | 581 |
9 | 604 | 0.95610468 | 578 |
10 | 604 | 0.951347941 | 575 |
11 | 604 | 0.946614866 | 572 |
12 | 604 | 0.94190534 | 569 |
13 | 604 | 0.937219243 | 566 |
14 | 604 | 0.932556461 | 564 |
15 | 604 | 0.927916877 | 561 |
16 | 604 | 0.923300375 | 558 |
17 | 604 | 0.918706841 | 555 |
18 | 604 | 0.91413616 | 552 |
19 | 604 | 0.909588219 | 550 |
20 | 604 | 0.905062904 | 547 |
21 | 604 | 0.900560104 | 544 |
22 | 604 | 0.896079705 | 542 |
23 | 604 | 0.891621597 | 539 |
24 | 604 | 0.887185669 | 536 |
25 | 604 | 0.88277181 | 534 |
26 | 604 | 0.87837991 | 531 |
27 | 604 | 0.874009861 | 528 |
28 | 604 | 0.869661553 | 526 |
29 | 604 | 0.865334879 | 523 |
30 | 604 | 0.86102973 | 520 |
31 | 604 | 0.856746 | 518 |
32 | 604 | 0.852483582 | 515 |
33 | 604 | 0.84824237 | 513 |
34 | 604 | 0.844022259 | 510 |
35 | 604 | 0.839823143 | 508 |
36 | 604 | 0.835644919 | 505 |