Homework Answers
| If he used 1st option purchasing New car Monthly payment would be | $ 485 |
| If he used 2nd option purchasing old car Monthly payment would be | $ 520 |
| Difference | $ 35 |
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8.6.5 Que Suppose that you are thinking about buying a car and have narrowed down your...
.6.5 Suppose that you are thinking about buying a car and have narrowed down your choices...
.6.5 Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $31,000 and can be financed with a three-year loan at 7.63%. The used-car option: A three-year old model of the same car costs $14,000 and can be financed with a four-year loan at 7.25%. What is the difference in monthly payments between financing the new car and financing the used car? Use PMT=- -nt...
14 of 20 (12 complete) HV. Score: 0 of 1 pt 8.6.5 Suppose that you are...
14 of 20 (12 complete) HV. Score: 0 of 1 pt 8.6.5 Suppose that you are thinking about buying a car and have narrowed down your choices to two options The new car option: The new car costs $32,000 and can be financed with a five-year loan at 6.63%. The used car option: A three year old model of the same car costs $13,000 and can be financed with a five-year loan at 5.56%. What is the difference in monthly...
You have decided to acquire a new car that costs $30,000. You are considering whether to...
You have decided to acquire a new car that costs $30,000. You are considering whether to lease it for three years or to purchase it and financing the purchase with a three-year installment loan. The lease requires no down payment and lasts for three years. Lease payments are $400 monthly starting immediately, whereas the installment loan will require monthly payments starting a month from now at an annual percentage rate (APR) of 8%. The discount rate (APR) is also 8%....
(25 Points) 2. You have decided to purchase a new car and trade-in your old car....
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...
You are considering buying a car with an amortized loan. The car loan will be $40,000...
You are considering buying a car with an amortized loan. The car loan will be $40,000 and have an annual interest rate of 2.8%, compounded monthly. You have two options for financing the car, the first is a fully amortized loan for 72 months while the second is a partially amortized loan for 36 months with a balloon payment of $18,000 (i.e. you will still owe $18,000 on the loan at month 36). What are the payments for each option?
Please show work! You have decided to acquire a new car that costs $30,000. You are...
Please show work! You have decided to acquire a new car that costs $30,000. You are considering whether to lease it for three years or to purchase it and financing the purchase with a three-year installment loan. The lease requires no down payment and lasts for three years. Lease payments are $400 monthly starting immediately, whereas the installment loan will require monthly payments starting a month from now at an annual percentage rate (APR) of 8%. The discount rate (APR)...
Jesse Pinkman is thinking about trading Cars.
(Nonannual compounding using a calculator) Jesse Pinkman is thinking about trading Cars. He estimates he will still have to borrow $21,000 to pay for his new car. How large will Jesse's monthly car loan payment be if he can get a 2-year (24 equal monthly payments) car loan from the university's creat union at an APR of 6.9 percent compounded month? Jesse's monthly car loan payment will be $ _______ (Round to the nearest cent)
2. You are considering buying a new car from a local dealer (Dealer 1) for $30,000....
2. You are considering buying a new car from a local dealer (Dealer 1) for $30,000. Dealer 1 will finance the entire purchase price at 6% interest over 5 years. Interest is compounded monthly and you must make monthly payments. What is the most you would be willing to offer another dealer (Dealer 2) for the same car who is offering a financing plan with a 2% interest rate over 5 years? Hint: If the loan payments are the same...
You are buying a car for $25,000 and financing it with a 5-year loan that has...
You are buying a car for $25,000 and financing it with a 5-year loan that has an annual rate of 9%, compounded monthly. How much of the second monthly payment goes toward repaying principal?
(Nonannual compounding using a calculator) Prof. Finance is thinking about trading cars. He estimates he will...
(Nonannual compounding using a calculator) Prof. Finance is thinking about trading cars. He estimates he will still have to borrow $30,000 to pay for his new car How large will Prof. Finance's monthly car loan payment be if he can get a 7-year (84 equal monthly payments) car loan from the university's credit union at 9.8 percent? Prof. Finance's monthly car loan payment will be $_______ (Round to the nearest cent.)
.6.5 Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $31,000 and can be financed with a three-year loan at 7.63%. The used-car option: A three-year old model of the same car costs $14,000 and can be financed with a four-year loan at 7.25%. What is the difference in monthly payments between financing the new car and financing the used car? Use PMT=- -nt...
14 of 20 (12 complete) HV. Score: 0 of 1 pt 8.6.5 Suppose that you are thinking about buying a car and have narrowed down your choices to two options The new car option: The new car costs $32,000 and can be financed with a five-year loan at 6.63%. The used car option: A three year old model of the same car costs $13,000 and can be financed with a five-year loan at 5.56%. What is the difference in monthly...
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...
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