Question

In: Accounting

The price of a car is $32,000. You have saved 10% of the price for a...

The price of a car is $32,000. You have saved 10% of the price for a down payment and will finance the balance with a 5-year loan at 8%. a.) Find the amount of the monthly payment. b.) What is the unpaid balance on the loan after 3 years? c.) How much will you have saved by paying off the loan early?

Solutions

Expert Solution

In case of any issues, or doubts please comment below


Related Solutions

In a recent advertisement a new car has a sale price of $32,000. The car company...
In a recent advertisement a new car has a sale price of $32,000. The car company is giving you the option of receiving a $3500 cash rebate or a special interest rate (for those who qualify) at 0.9% for 5 years. If the local bank will lend you the money at 4.5% for 5 years should you take the discount and borrow from the bank or select the low interest rate from the company? What option would you select and...
You would like to purchase a car that costs $32,000. You have decided to finance the...
You would like to purchase a car that costs $32,000. You have decided to finance the car with a four-year car loan. If the APR (annual percentage rate) is 5 percent, compute your monthly payment. Construct a loan amortization table in Excel for the car loan.   You should do the problem in Excel using monthly payments and should submit the spreadsheet.
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...
You have already saved $6850 to buy a used car. You invest this money in a...
You have already saved $6850 to buy a used car. You invest this money in a certificate of deposit earning 0.30% APR compounded monthly. How many years will it take your account to reach your target of $7275 in order to buy the new car?
You have saved $10,000 for a down payment on the purchase of a new car, however,...
You have saved $10,000 for a down payment on the purchase of a new car, however, since you plan to buy the car one year from today, you need to decide how to invest the money for one year. You are limited to one of two choices: 1. A Bond Fund with an expected return of 3%/year 2. A Stock Fund with an expected return of 7%/year. Which fund is best? Explain why!
a. You have saved $5,000 for a down payment on a new car. The largest monthly...
a. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $   Financed for 60 months: $   Bank A pays 6% interest compounded...
a. Suppose you have $5,000 saved. How much will you have in 10 years if you...
a. Suppose you have $5,000 saved. How much will you have in 10 years if you can earn 10% on your investment? b. Which of the following statements does NOT accurately describe a line of credit? A line of credit is already approved before the money is actually needed. A line of credit is available immediately when needed. A line of credit can be obtained at a credit union, savings and loan association, or bank. A line of credit provides...
You have decided to buy a car, the price of the car is $18,000. The car...
You have decided to buy a car, the price of the car is $18,000. The car dealer presents you with two choices: (A) Purchase the car for cash and receive $2000 instant cash rebate – your out of pocket expense is $16,000 today. (B) Purchase the car for $18,000 with zero percent interest 36-month loan with monthly payments. Market interest rate is 4%. Which option above is cheaper? How much do you save?
You have saved $3,000 for a down payment on a new car. The largest monthly payment...
You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have a 11% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do not round...
You have saved $4,000 for a down payment on a new car. The largest monthly payment...
You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $   What is the most expensive car you can afford if you finance it for 60 months? Do not round...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT