You want to buy a car that has a price of $30,000. You will trade in...

You want to buy a car that has a price of $30,000. You will trade in a vehicle that has payments of $215.84 per month. You have 2.5 years left at an APR of 6%. They will give you $7000 in trade in. If you trade in and finance the car for 5 years @ 7% APR, what will your payment be?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with formula, let me know, will do that also. Thank you.

jeff jeffy answered 10 months ago

Next > < Previous

Related Solutions

a. You want to buy a car, and a local bank will lend you$30,000. The...

a. You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.Monthly loan payment: $ EAR:b. What is...

You want to buy a car, and a local bank will lend you $30,000. The loan...

You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 5% with interest paid monthly. What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent. $ What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places. %

You plan to buy a new car. The price is $30,000 and you will make a...

You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?

LOAN AMORTIZATION You want to buy a car, and a local bank will lend you $30,000....

LOAN AMORTIZATION You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 7 years (84 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment? Round to TWO decimal places.

You want to buy a car for cash 5 years from now. The car price at...

You want to buy a car for cash 5 years from now. The car price at that time will be 20000 dollars. To this end you want to make an annuity deposit each year so that you accumulate the required amount. Interest rate is 6%. How much do you have to deposit each year if (i) deposits are made at the end of each year (ii) deposits are made at the beginning of each year.

You want to buy a car for cash 5 years from now. The car price at...

It is time to buy a new car. You worked hard and want to buy an...

It is time to buy a new car. You worked hard and want to buy an expensive car (Porsche Cayenne) for $100,000. Porsche dealership will gladly finance your new purchase. However, the only way for you to be financed is to show them that you have 20% of the money needed. As soon as you have that much money in your account, the dealership will finance your new vehicle. You start saving for 52 months with the APR of 7.5%,...

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 are planning to buy a car. The retail price of the car is $40,000. Fox...

You are planning to buy a car. The retail price of the car is $40,000. Fox Auto is making you the following offer: You pay $4,000 down and then $1,000 a month for next 36 months (3 years). The APR is 4.8 percent (compounded monthly). This offer is equivalent to a $[___] off the retail price (when paid in cash today). Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $2,534...

You will buy a new car today. You will borrow the full price of the car. You will...

You will buy a new car today. You will borrow the full price of the car. You will get a FIVE year loan that will be paid back annually. It will take you the full FIVE years to pay back the loan. (In other words, you will not pay it off early.) You will pay back the same amount every year (an annuity). The auto dealership offers you 3 choices. 1) Pay $30,000 for the car at 0% interest for the FIVE years. 2) Pay $28,000 for the car at...

Subjects