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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.

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Answer #1

Answer to Q3 (First question in the required list Case-1 0.375% 12 Case-2 Case-3 Case-4 Case-5 0.375% 0.375% 0.375% 0.375% 12 Case-6 0.375% 12 Case-7 0.375% 12 Case-8 0.375% 12 Case-9 Case-10 0.375% 12 Monthly Interest rate, RATE Number of Monthly payments, NPER Amount available today, PV Target maturity value in year-1, FV Monthly installment type, TYPE Monthly payments for next 12 months 0.375% 12 12 12 12 4,000 $4,000 $4,000 $4,000 $4,000 $4,000$4,000 $4,000 $4,000 $4,000 $12,000 $16,000 $20,000 $24,000 $28,000 $32,000 $36,000 $40,000 $44,000 $48,000 $638.03 $964.54 $1,291.06 $1,617.57 $1,944.08 $2,270.60 $2,597.11 $2,923.63 $3,250.14 $3,576.65 NOTE: Monthly interest rate, RATE-4.5% / 12 0.375%; Annual interest rate is converted into monthly interest rate; Amount available today, PV $4,000 saved amount otherwise available today if finance option is not chosen; Target maturity value in year-1, FV Car price without considering down payment; Monthly installment type, TYPE 0 if payments made at the end of each month; 1 if payments made at the beginning of each month.

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