The price of a new car is $16,000. Assume that an individual makes a down payment...

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	$

Solutions

Expert Solution

Colby Messinger answered 1 year ago

Next > < Previous

Related Solutions

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 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...

You have saved $5,000 for a down payment on a new car. The largest monthly payment...

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 6% 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: $ Find the present values of the following...

The original sale price of a car is $22,194.96. The required down payment is $1,410. The...

The original sale price of a car is $22,194.96. The required down payment is $1,410. The monthly payment a customer will pay on the note is $604.36 for a 3-year auto loan with a promotional financing rate at 2.99%? Given that information respond the Following Based on the information from Q48, if a customer decides to skip the 2.99% financing promotion loan but take the cash rebate offer, how much cash does the customer need to pay to buy the...

In order to buy a new car, you finance $23,000 with no down payment for a...

In order to buy a new car, you finance $23,000 with no down payment for a term of five years at an APR of 6%. After you have the car for one year, you are in an accident. No one is injured, but the car is totaled. The insurance company says that before the accident, the value of the car had decreased by 25% over the time you owned it, and the company pays you that depreciated amount after subtracting...

The original sale price of a car is $22,194.96. The required down payment is $1,410. What...

The original sale price of a car is $22,194.96. The required down payment is $1,410. What is the monthly payment if the customer can apply for a 3-year auto loan with a promotional financing rate at 2.99%? Based on answer $604.36 monthly payment, if a customer decides to skip the 2.99% financing promotion loan but take the cash rebate offer, how much cash does the customer need to pay to buy the new car? We assume that regular market interest...

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10%...

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

1 Lupe made a down payment of $5000 toward the purchase of a new car. To...

1 Lupe made a down payment of $5000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 6%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $440/month for 36 mo. What is the cash price of the car? 2. Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest...

Subjects