Suppose that you decide to buy a car for $63,000, including taxes and license fees. You...
Suppose that you decide to buy a car for $63,000, including taxes and license fees. You saved $ 13,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $7000 off the price of the car, followed by a five-year loan at 7.69%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years.
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Suppose that you decide to buy a car for $63,000, including
taxes and license fees. You...
You buy a car for $18,450. You must also pay tax and license fees of $725....
You buy a car for $18,450. You must also pay tax and license fees of $725. You have $1,500 as a down payment. Your bank will make you a 4-year car loan for the remaining amount, at 7.2% interest, but will charge you a $75 processing fee (which will be added to your loan amount). a.) What are your monthly payments? b.) What is your finance charge? c.) What is the total cost of the car, including finance charges? d.)...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and taxes. "Now's a good time to buy," claims the salesman, "we're offering 4 year loans at 5.9%. Even if you have the cash, you're better off borrowing." Emily is confused. The salesman goes on to explain the payment on the car loan would be $593.01, which means that total interest paid on the loan will be $3,164.48. By investing the $25,300 at current savings...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and taxes. "Now's a good time to buy," claims the salesman, "we're offering 4 year loans at 5.9%. Even if you have the cash, you're better off borrowing." Emily is confused. The salesman goes on to explain the payment on the car loan would be $593.01, which means that total interest paid on the loan will be $3,164.48. By investing the $25,300 at current savings...
Assume that you want to buy an Audi for $35,000. You have only $5,000 available for...
Assume that you want to buy an Audi for $35,000. You have only $5,000 available for the down-payment and you must finance the rest. A local Credit union is offering you a 3-year car-loan at 6% APR12. Rochester Audi dealer is offering you 3-year financing at 3% APR12. With either loan, you'd be repaying it in equal monthly installments. Another dealer at Bloomfield is offering you a $500 discount off the car price but no financing. Note: there are only...
QUESTION 6 Suppose you want to buy a car that costs $17,000. If the dealer is...
QUESTION 6 Suppose you want to buy a car that costs $17,000. If the dealer is offering 100% financing at 7.4% APR compounded monthly for a 5 year loan, what would be the monthly payment? (Answer to the nearest penny)
Theory of Interest: The sale price of the car you wanted to buy is $25,456, but...
Theory of Interest: The sale price of the car you wanted to buy is $25,456, but you decided to buy the car for a deal of 60 monthly payments of $559 each month. After a year, you decide it's time for some new wheels. You return to the dealer and want to trade in your car for a new model. The dealer offers you a trade-in value of $20,000. How much of a down payment will you be able to...
FINANCIAL PLANNING CASES CASE 1 The Johnsons Decide to Buy a Car After three years of...
FINANCIAL PLANNING CASES CASE 1 The Johnsons Decide to Buy a Car After three years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry and Belinda estimate that they could afford to spend about $10,000 on a good used car by making a down payment of $2000 and financing...
Assume you will purchase a new car. The dealer is currently offering a special promotion: you can choose A) a $1500 rebate up front with 6% financing OR B) 0% financing for the first 36 months...
Assume you will purchase a new car. The dealer is currently offering a special promotion: you can choose A) a $1500 rebate up front with 6% financing OR B) 0% financing for the first 36 months and 6% financing for the last 2 years. Both loans are for 5 years. Find the car you want to purchase and its cost and where you can purchase it from.(Do this from an online website or at a dealership) For promotion A Compute...
QUESTION 5 Suppose you want to buy a house that costs $750,000. You are required to...
QUESTION 5 Suppose you want to buy a house that costs $750,000. You are required to put 10% down, which means the amount to be borrowed is 90% of the price of the house. If you want a 30 year mortgage, and the borrowing rate is 5.6% APR compounded monthly, what would be your monthly payment? (Answer to the nearest penny) 5 points QUESTION 6 Suppose you want to buy a car that costs $17,000. If the dealer is...
Can) ou are in the process of purchasing a new automobile that will cost you $27,500....
Can) ou are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2,500 rebate (applied toward the purchase price) or financing at a 0.9% APR for 48 months (with payments made at the end of the month) and no rebate. You have been pre-approved for an auto loan through your local credit union at an interest rate of 5.5% APR for 48 months. If you take the $2,500 rebate...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and taxes. "Now's a good time to buy," claims the salesman, "we're offering 4 year loans at 5.9%. Even if you have the cash, you're better off borrowing." Emily is confused. The salesman goes on to explain the payment on the car loan would be $593.01, which means that total interest paid on the loan will be $3,164.48. By investing the $25,300 at current savings...
1. (9 marks) Emily wants to buy a new car for $25,300, including all fees and taxes. "Now's a good time to buy," claims the salesman, "we're offering 4 year loans at 5.9%. Even if you have the cash, you're better off borrowing." Emily is confused. The salesman goes on to explain the payment on the car loan would be $593.01, which means that total interest paid on the loan will be $3,164.48. By investing the $25,300 at current savings...
Assume that you want to buy an Audi for $35,000. You have only $5,000 available for the down-payment and you must finance the rest. A local Credit union is offering you a 3-year car-loan at 6% APR12. Rochester Audi dealer is offering you 3-year financing at 3% APR12. With either loan, you'd be repaying it in equal monthly installments. Another dealer at Bloomfield is offering you a $500 discount off the car price but no financing. Note: there are only...
Assume you will purchase a new car. The dealer is currently offering a special promotion: you can choose A) a $1500 rebate up front with 6% financing OR B) 0% financing for the first 36 months and 6% financing for the last 2 years. Both loans are for 5 years. Find the car you want to purchase and its cost and where you can purchase it from.(Do this from an online website or at a dealership) For promotion A Compute...
Can) ou are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2,500 rebate (applied toward the purchase price) or financing at a 0.9% APR for 48 months (with payments made at the end of the month) and no rebate. You have been pre-approved for an auto loan through your local credit union at an interest rate of 5.5% APR for 48 months. If you take the $2,500 rebate...
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