Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14.750. He put $2.000 down and financed the rest with a 48-month, 75% loan.
What is his monthly car payment by table lookup? (Use Table 14.2) (Do not round Intermediate calculations. Round your answer to the nearest cent.)
Monthly payment = _______
Answer
Monthly payment is $308.28
Explanation
Loan amount = Purchased value of car - Down payment
= $14,750 - $2,000
= $12,750
Present value (PV) = $12,750
NPER = 48
Monthly rate = 7.5% ÷ 12 = 0.625%
Monthly payment (MP) is computed using the equation given below:
MP = PMT {RATE, NPER, -PV, FV}
= PMT {0.625%, 48, -$12,750, 0}
= $308.28
Hence, the monthly payment is $308.28
Before purchasing a used car, Cody Lind checked kbb to learn what he should offer for...
Before purchasing a used car, Jim Myers checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14,650. She put $1,500 down and financed the rest with a 48-month, 8% loan. What is her monthly car payment by formula? (Round your answer...
Before purchasing a used car, Jim Myers checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,000. She put $2,500 down and financed the rest with a 48-month, 7.5% loan.What is her monthly car payment by formula? (Round your answer...
Before purchasing a used car, Jim Myers checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,300. She put $1,900 down and financed the rest with a 48-month, 8% loan. What is her monthly car payment by formula? (Round your answer...
Before purchasing a used car, Jim Myers checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,250. She put $3,000 down and financed the rest with a 36-month, 7.5% loan. What is her monthly car payment by formula? (Round your answer...