Question
In: Finance
Tim Smith is shopping for a used car. He has found one priced at $4500. The...
Tim Smith is shopping for a used car. He has found one priced at $4500. The salesman has told Tim that if he can come up with a down payment of $500 the dealer will finance the balance of the price at an annual rate of 14% over 2 years (24 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
9%?
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 7 months agoRelated Solutions
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