In: Advanced Math
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 the interest charges be if she elects the 36-month
plan? The 72-month plan?
36-month plan | $ |
72-month plan | $ |