Question

In: Finance

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate)....

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).

A car with a sticker price of $42,850 with factory and dealer rebates of $5,100

(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)

(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)

(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)

(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.   

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 months ago
Next > < Previous

Related Solutions

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate)....
Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,460 with factory and dealer rebates of $6,000 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)   (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) (c) Use the APR approximation formula to...
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.
You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual
You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual interest rate of 6%. The loan payments should be made at the end of each month.A. How much is the monthly payment on the loan? Total monthly payment is ________.B. How much of the monthly payment is the interest payment in month 17?The interest amount is ________.C. How much of...
Amortize a $35,000 car loan with a 5% annual interest rate and payments for 60 months...
Amortize a $35,000 car loan with a 5% annual interest rate and payments for 60 months (4) What is the monthly payment? (5) What will the balance on the loan be after 2 years of payments? (Assume that you just took out the loan) (6) How many months will it be before the car is halfway paid off?
A $52,500 new car loan is taken out with the terms 9% APR for 60 months....
A $52,500 new car loan is taken out with the terms 9% APR for 60 months. How much are monthly payments on this loan? ________. A pottery factory purchases a continuous belt conveyor kiln for $72,000. A 6.0% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $746.43, how many years will it take for this loan to be paid?
The price of a new car is $32,000. Assume that an individual makes a down payment...
The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 48 months? Over a period of 72 months? 48 months $ 72 months $ (b) What will...
The price of a new car is $16,000. Assume that an individual makes a down payment...
The price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 36 months? Over a period of 72 months? 36 months     $ 72 months     $ (b) What will...
1/ Assume you purchased a car that costs $14,000. The car dealership is offering financing at...
1/ Assume you purchased a car that costs $14,000. The car dealership is offering financing at 5% per year. How much is your annual payment assuming you financed the car for 5 years? How much did the car actually cost? 2/ At the beginning of the season on April 1, Green Acres Golf Course completed a physical inventory count and found that $3,000 of inventory was still on hand. Throughout the month of April, Green Acres had the following purchase...
You receive a $35,000 car loan at 6% nominal annual for 60 months. Interest is compounded...
You receive a $35,000 car loan at 6% nominal annual for 60 months. Interest is compounded daily and you make monthly payments. How much PRINCIPLE do you pay on your 12th payment?
You receive a $35,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded...
You receive a $35,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded daily and you make monthly payments. Your Residual value at the end of your lease is $15,000. Assume LEASE payments are made at the BEGINNING of the month, (first payment due immediately). What is your monthly LEASE payment?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT