Question
In: Finance
Tim Smith is shopping for a used luxury car. He has found one priced at $30,000....
Tim Smith is shopping for a used luxury car. He has found one
priced at $30,000. The dealer has told Tim that if he can come up
with a down payment of 5,000, the dealer will finance the balance
of the price at a 6% annual rate over
3years (36 months).
a. Assuming that Tim accepts the dealer's offer, what will
his monthly (end-of-month) payment amount be?
b. Use a financial calculator or spreadsheet to help you
figure out what Tim's monthly
payment would be if the dealer were willing to finance the
balance of the car price at an annual rate of 4.0%?
a. Tim's monthly (end-of-month) payment amount
is_______
(Round to the nearest cent.)
b. Tim's monthly payment, if the dealer were willing to
finance the balance of the car price at an annual rate of 4.0%,
would be ________(Round to the nearest cent)
Solutions
jeff jeffy answered 1 month agoRelated Solutions
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(Hint: Use four decimal places for the monthly interest rate in
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