Question
In: Finance
Suppose you intend to purchase a new car after you graduate. You expect to put $5,000...
Suppose you intend to purchase a new car after you graduate. You expect to put $5,000 down and finance the balance over a 5-year period. The maximum amount you are willing to pay each month is $600. What is the maximum price you can pay for the car in other words, how much you can afford to pay for the car, assuming an interest rate of 8% per year, compounded monthly?
Solutions
jeff jeffy answered 2 months agoRelated Solutions
You are a college student and you plan to purchase a new car after you graduate...
You are a college student and you plan to purchase a new car
after you graduate and begin your first job. You want to start
saving for a down payment now on a new car in the future . You
decide to make monthly payment into a saving account, which earns
2.5% annual interest compounded monthly. You will calculate a
monthly payment into the saving account for each scenario.
A.To save $4,000 for 3 years.
B.To save $5,000 for 3...
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You would like to purchase a new car in 4 years after you
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year for the next 4 years. How much do you have to invest today if
you savings account earns 3% APR (nominal) to exactly pay for your
new car?
$421,657
$38,122
$42,543
$37,799
please work out and show how nominal rate...
You are about to purchase a brand new car for $23.400. You have $14.400 to put...
You
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two options.
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years.
2) $1000 off the price of the car (known as cash back) and a
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7. After deciding to buy a new car, you can either lease the car or purchase...
7. After deciding to buy a new car, you can either lease the car
or purchase it
on a three-year loan. The car you wish to buy costs $44,000. The
dealer has a special
leasing arrangement where you pay $1,000 per month, at the
beginning of each month,
for the next three years. If you purchase the car, you will pay
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over the next three years at a 3.6% APR. You believe you will be...
Suppose you purchase a new car for $27,000. You do not have money in your bank...
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money in your bank today but since you have just graduated from
UTSA and have a job with high five figure annual salary, you see no
problems in taking a five-year loan from your dealer. After looking
at your options, you agree to the following terms: 0% down payment
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monthly payments over the five years. (Round...
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Cooper. You must put $2500 down, and make payments of $419 per
month for 48 months, at the end of each month, or pay $19,000 cash.
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financing terms, how much money are you saving (+) or losing (-) in
comparison to paying cash in dollars and cents? (Your answer should
be positive when saving money, negative...
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