look down needs answer the last question 3 and 4 please You will be provided a...
look down needs answer the last question 3 and 4 please
You will be provided a car price of either: $12k, $16k, $20k, $24k, $28k, $32k, $36k, $40k, $44k, or $48k
1. Suppose you have $4000 saved up for a down payment, and you plan to finance the rest of the balance due. You are offered a 60 month loan at 4.5% APR. Calculate your monthly payment for the loan. What is the total cost of the car and loan?
That is, what will you end up paying in total in monthly payments over the 60 month term of the loan?
What will the total interest be at the end of the loan?
Q2Now suppose you’d like to save more money for a down payment. You decide that one year from now you will buy a car for the same price. Until then, you will save one month’s payment (the same payment you calculated in part 1) each month of the coming year.
How much will you have saved over the year?
What will be the new principal amount? What is the monthly payment for a 60 month, 4.5% interest loan on this lower principal?
What is the total cost of the car and loan?
What will the total interest be at the end of this loan?
3.Q Now suppose you’d like to not finance any of the cost. How much will you have to save up each month to be able to buy the car in 1 year (you will have the same initial down payment asbefore).
4. Q Discuss the advantages and disadvantages of each plan (1), (2) and (3), which you would choose and why.
Homework Answers
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look down needs answer the last question 3 and 4
please
You will be provided a...
(3 pts) Bob would ike to have $20,000 in 4 years to use as a down...
(3 pts) Bob would ike to have $20,000 in 4 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositine 5375 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1) Periodic Nominal APR) (3 pts) Sue has $30,000 to use as a down...
You have saved $5,000 for a down payment on a new car. The largest monthly payment...
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(3 pts) Sue has $30,000 to use as a down payment on a house and can...
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4 Loan Interest. Devika is considering the purchase of a car. After making the down payment, she will finance $15,500. Devika is offered two maturities. On a four-year loan, Devika will pay $371 per month. On a five-year loan, Devika's monthly payments will be $307. If Devika had been able to afford the four-year loan, how much interest in total would she have saved compared to the five-year loan? Work:
Suppose you purchase a new car for $21,500. You make a down payment of $5000 (ie....
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You want to buy your sister’s pickup truck that costs $4,800 all-in. Suppose she is offering...
You want to buy your sister’s pickup truck that costs $4,800 all-in. Suppose she is offering to finance it for you if you pay her each month with no money down, and 20% APR for 2 years. What would be the monthly payment? What is the total amount paid over the life of the loan? What is she getting in interest? She also offered to hold the car for you for a year. How much would you have to save...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
EBook 1. You have saved $5,000 for a down payment on a new car. The largest monthly payment you ...
eBook 1. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $400. The loan will have an 11% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do...
eBook 1. You have saved $5,000 for a down payment on a new car. The largest...
eBook 1. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $400. The loan will have an 11% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositing $350 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1 Periodic *.ㅡ I Nominal (APR)- % 2) (3...
(3 pts) Bob would ike to have $20,000 in 4 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositine 5375 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1) Periodic Nominal APR) (3 pts) Sue has $30,000 to use as a down...
(3 pts) Sue has $30,000 to use as a down payment on a house and can afford to pay $1000 per month for a mortgage. If the interest rate on a 15-year mortgage is 4.2% (this is an APR) compounded monthly. What is the highest price house she can afford using a 15-year mortgage? 2) s. (2 pts) Larry would like to retire in 20 years. He currently has $300,000 in his retirement account and is planning on depositing an...
4 Loan Interest. Devika is considering the purchase of a car. After making the down payment, she will finance $15,500. Devika is offered two maturities. On a four-year loan, Devika will pay $371 per month. On a five-year loan, Devika's monthly payments will be $307. If Devika had been able to afford the four-year loan, how much interest in total would she have saved compared to the five-year loan? Work:
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
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