After fiere negotiations, a car dealer sells a car to you for $37,400.00. after agreeing on...
After fiere negotiations, a car dealer sells a car to you for $37,400.00. after agreeing on a price, the dealer makes a financing offer:
1,900 cash back offer
1.70% low APR offer
66 month offer
What is the monthly payment on the "low rate" offer?
Please show how to solve using a finacial calculator.
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After fiere negotiations, a car dealer sells a car to you for
$37,400.00. after agreeing on...
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Show all excel formulas used Ex. 3 JIf a dealer offers you a car at $275...
Show all excel formulas used
Ex. 3 JIf a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying? Down payment Monthly payment Loan period months APR No. of compounding times per year Monthly rate Present Value Book formula Excel function Ex. 4 If you take out an $10,000 car loan that call for...
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You have $5,000 down payment on a $20,000 car. The dealer offers you the following two...
You have $5,000 down payment on a $20,000 car. The dealer offers
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(a) paying the balance with
end-of-month payments over the next five years at
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(b) a reduction of $1000 in the price
of the car, the same down payment of $5,000, and bank financing of
the balance after down payment, over 5 years with end-of-month
payments at
12%
Which option is better and why?
12_9 12
You are considering buying a car worth $30,000. The dealer, who is anxious to sell the car, offers you an attractive financing package. You have to make a down-payment of $3,500, and pay the rest over 3 years with monthly payments. The dealer will charge you interest at a constant APR of 2%, which is lower than the market interest rate. (1) What is the monthly payment to the dealer? (2) The dealer offers you a second option: you pay...
Problem #5: You want to buy a car that costs $21,000. The dealer wants a 10% down payment and quotes a 15% APR for a 72-month loan. (a) What will be your monthly payment if the payment is made at the end of each month from the day you buy the car? (b) What will be your monthly payment if you tell the dealer that you will not make any down payment, but you will make your payments at the...
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Show all excel formulas used
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A car company is offering a choice of deals. You can receive $2.000 cash back on the purchase, or a 37 percent APR. 4-year loan. The price of the car is $28,500 and you could obtain a 4-year loan from your credit union, at 8.7 percent APR. Since the cash back is used to reduce the size of the loan, the cost of the car is entirely paid for with the debt. Therefore, the true cost of each deal can...
You consider buying a car for a price of $34,000. The car is to be bought on credit with an annual interest rate of 4.25%. The credit will be repaid in monthly constant total payments spread over 60 months. The dealer makes a "special" offer to you: a one-year grace period, which means that the first payment will be made only one year after the car is bought (however this period is subject to interest!!!). 1. What is the nominal...
You have $5,000 down payment on a $20,000 car. The dealer offers
you the following two options:
(a) paying the balance with
end-of-month payments over the next five years at
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(b) a reduction of $1000 in the price
of the car, the same down payment of $5,000, and bank financing of
the balance after down payment, over 5 years with end-of-month
payments at
12%
Which option is better and why?
12_9 12
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