Question
In: Finance
Finance: You pick out a new car and the dealer is offering 0% interest for 60...
Finance:
|
You pick out a new car and the dealer is offering 0% interest for 60 months or a $2,500 cash-back bonus. Your negotiated price is $16,000. Your credit union is currently offering a special 2.6% for 60-month car loans. |
| a. | What will be your monthly car payment if you accept the 0% interest offer? |
| Monthly car payment: $266.60 | $ |
| b. |
What will be your monthly car payment if you accept the $2,500 cash-back bonus and finance the purchase at your credit union? |
| Monthly car payment: $195.50 | $ |
| c. |
Should you accept the 0% interest offer or the cash-back bonus? |
||||
|
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.
jeff jeffy answered 1 year agoRelated Solutions
1.Suppose you want to buy a car that costs $19,000. If the dealer is offering 100%...
1.Suppose you want to buy a car that costs $19,000. If the
dealer is offering 100% financing at 6.2% APR for a 5 year loan,
what would be the monthly payment? (Answer to the nearest
penny)
2.Suppose you want to buy a house that costs $850,000. You are
required to put 10% down, which means the amount to be borrowed is
90% of the price of the house. If you want a 30 year mortgage, and
the borrowing rate is...
You decide to buy a new car, with a drive-out price of $37,500. You finance the...
You decide to buy a new car, with a drive-out price of $37,500.
You finance the car at 4.8% APR for 5 years, with end of month
payments. Answer the following questions. Show your inputs for
potential partial credit. Show your answer to the nearest $.01 a.
What is your monthly payment? b. How much of your 25th payment is
payment of principal? c. Over the entire life of the loan (assuming
you pay on time), what was the total...
You are negotiating to buy a new car with a car salesman at a local dealer....
You are negotiating to buy a new car with a car salesman at a
local dealer. You have negotiated the price to $35,000. You have
$5,000 to put towards the down payment and plan to get a loan for
the rest. If you can get an annual interest rate of 11 percent APR
(with monthly compounding) over a 5-year period, what would be your
monthly payment? Round it to two decimal place (cents), e.g.,
234.56.
You are negotiating to buy a new car with a car salesman at a local dealer....
You are negotiating to buy a new car with a car salesman at a
local dealer. You have negotiated the price to $31,000. You have
$3,000 to put towards the down payment and plan to get a loan for
the rest. If you can get an annual interest rate of 5 percent APR
(with monthly compounding) over a 5-year period, what would be your
monthly payment? Round it to two decimal place (cents)
You took out a loan to buy a new car. The monthly interest rate on the...
You took out a loan to buy a new car. The monthly interest rate
on the loan is 1%. You have to pay $270 every month for 60
months.
Attempt 1/5 for 8 pts. Part 1 What is the present value of the
cash flows if it's an ordinary annuity?
Attempt 1/5 for 8 pts. Part 2 What is the future value of the
cash flows if it's an ordinary annuity?
Attempt 1/5 for 10 pts. Part 3 What is...
You need a new car and the dealer has offered you a price of $20,000, with...
You need a new car and the dealer has offered you a price of
$20,000, with the following payment options: (a) pay cash and
receive a $2000 rebate, or (b) pay a $5000 down payment and finance
the rest with a 0% APR loan over 30 months. But having just quit
your job and started an MBA program, you are in debt and you expect
to be in debt for at least the next 2 1 2 years. You plan...
You need a new car and the dealer has offered you a price of $20,000, with...
You need a new car and the dealer has offered you a price of
$20,000, with the following payment options: (a) pay cash and
receive a $2,000 rebate, or (b) pay a $5,000 down payment and
finance the rest with a 0% APR loan over 30 months. But having just
quit your job and started an MBA program, you are in debt and you
expect to be in debt for at least the next 2 ½ years. You plan to...
1. You decide to buy a new car. You negotiate with the dealer and get the...
1. You decide to buy a new car. You negotiate with the dealer
and get the car for $40,000. What will be your monthly payment if
you finance the purchase through your bank with a 6-year, 11% auto
loan (assume no down payment).
a. What if you made a down payment of $4,000? What would be the
monthly payment for the car?
If you wanted to finance a new car, would you apply to a finance company or...
If you wanted to finance a new car, would you apply to a finance
company or a commercial bank? What are the advantages and
disadvantages of either choice?
You would like to buy a new car that costs $25,000. The dealer offers you a...
You would like to buy a new car that costs $25,000. The dealer
offers you a 3-year loan at an 8% interest rate, and because that
rate is higher than market rates they offer to lower the price by
$2,000. Assuming you make the required payment, should you accept
his offer or seek alternative financing at the 3% rate?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain two theories or frameworks for understanding how Western Europe emerged out of 1,000 years of...
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
ADVERTISEMENT