1. From this partial advertisement: Used car $93.38 per month for 60 months Cash price $4,200...

1. From this partial advertisement:

Used car

$93.38 per month for 60 months

Cash price $4,200

Down payment $50

a. Calculate the amount financed.

b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.)

c. Calculate the deferred payment price. (Do not round intermediate calculations. Round your answer to the nearest cent.)

d. Calculate the APR by formula. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.)

e. Calculate the monthly payment (by formula). (Do not round intermediate calculations. Round your answer to the nearest cent.)

Solutions

Expert Solution

While calculating monthly payment in part e, use APR rate as 12.5064% (Do not use rounded off APR)

jeff jeffy answered 1 month ago

Next > < Previous

Related Solutions

If the car I purchased has payments of $350 per month for 60 months, and the...

If the car I purchased has payments of $350 per month for 60 months, and the financed amount totaled $19,339, what is the ANNUAL interest rate for the loan? a. 3.49% b. 27.4% c. 3.29% d. 0.274% please show work.

Shady Motors will sell you a $10,000 used car for $400 a month for 60 months. What is the interest rate?

Shady Motors will sell you a $10,000 used car for $400 a month for 60 months. What is the interest rate?Group of answer choices3.49 percent6.98 percent13.96 percent27.91 percent41.87 percent

The total fixed cost is $60 per month. (a) If the price pervisit is $60,...

The total fixed cost is $60 per month. (a) If the price per visit is $60, at what level of visits will the maximum profit position be? (b) What are the profits at this level?(c) What is the quantity supplied? (d) If the total fixed cost increases to $80 and the price per visit is $60, what is the quantity supplied (assuming maximizing profits)?quantity per visits supplied:1,2,3,4,5,6,total variable cost: 20,50,90,140,210,290

In a recent advertisement a new car has a sale price of $32,000. The car company...

In a recent advertisement a new car has a sale price of $32,000. The car company is giving you the option of receiving a $3500 cash rebate or a special interest rate (for those who qualify) at 0.9% for 5 years. If the local bank will lend you the money at 4.5% for 5 years should you take the discount and borrow from the bank or select the low interest rate from the company? What option would you select and...

Cat leased $32,000 of conveyers to Dog for 60 months for $570 per month. The conveyers...

Cat leased $32,000 of conveyers to Dog for 60 months for $570 per month. The conveyers have a 10 year life. The implicit rate is six percent, Dog’s incremental borrowing rate. Record the journal entries for the initiation of the lease and the first two monthly payments for both Cat and Dog.

Stock price = £60. In 2 months, two months the price will be either £66 or...

Stock price = £60. In 2 months, two months the price will be either £66 or £54. The risk-free interest rate is 10% p.a on a continuous compounding basis. What will be the value of a 2-month European put option with a strike price of £62? Please provide a step by step explanation as I would like to fully understand and not just copy the answer. Thank you :)

search for one (1) Rhetorical Advertisements and identify the advertisement techniques used in the advertisement. Then...

search for one (1) Rhetorical Advertisements and identify the advertisement techniques used in the advertisement. Then answer the questions below. Justify. GUIDE QUESTIONS FOR YOUR ESSAY: What is the nature of the advertisement? Why did you choose this advertisement? What are the messages it convey? What are the symbolisms present in the ad? What audience is the ad targeting? What makes you think so? What techniques does the ad use? What does the ad say about the people who buy...

An advertisement for Ford trucks offered "2.9% financing (for 48 months) or $2,000 cash back." A...

An advertisement for Ford trucks offered "2.9% financing (for 48 months) or $2,000 cash back." A truck buyer financed $20,000 at the low interest rate instead of paying $18,000 cash (after the $2,000 rebate). What was the effective rate of interest on the loan if the forgone cash rebate is treated as part of the cost of financing? (The 2.9% interest rate is a monthly compounded nominal rate.)

You want to buy a car for cash 5 years from now. The car price at...

You want to buy a car for cash 5 years from now. The car price at that time will be 20000 dollars. To this end you want to make an annuity deposit each year so that you accumulate the required amount. Interest rate is 6%. How much do you have to deposit each year if (i) deposits are made at the end of each year (ii) deposits are made at the beginning of each year.

You want to buy a car for cash 5 years from now. The car price at...

Subjects