Monthly Payment : | |||||
Monthly Payment = | Loan Amount | ||||
Number of year * 12 | |||||
= | $15,000.00 | ||||
3 Years * 12 | |||||
= | $15,000.00 | ||||
36 Months | |||||
= | $416.67 | ||||
Monthly Payment is $416.67 | |||||
A car dealer offers you a loan with no interest charged for the term of three...
8. You purchased a new car for sis,000. The dealer offers you an interest rate of 5% over years. a) What would your monthly payment be? b) Suppose you would like to save interest by paying the loan off in 3 years. How much more a ma would you need to pay? c) What would the effective interest rate be if you paid off the car in 3 years? 9. Sketch the annual cash flow diagrams for each case in...
You wish to buy a $22,000 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
14 Problem 5-39 Loan Payments (LG5-9) You wish to buy a $23,500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments (Do not round intermediate calculations and round your final answer to 2 decimal places.) -Book Payment per month Hint erences How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment per month
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...
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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...
Emile bought a car for 529,000 three years ago. The loan had a 5 year term at 6X interest rate, and Emile has been making monthly payments for three years. How much does he still owe on the car? (Hint: first you will need to figure out the monthly payment on the 5 year loan.) Answer: Check
Emile bought a car for $27,000 three years ago. The loan had a 5 year term at 7% interest rate, and Emile has been making monthly payments for three years. How much does he still owe on the car? (Hint: first you will need to figure out the monthly payment on the 5 year loan.) Answer:
We are considering purchasing a car. We can obtain financing (a loan) from the dealer or the bank. The term of either loan will be 5 years (with monthly payments). The dealer offers a loan with an annual nominal interest rate of 1.9% for the full cost of $24, 000 (including taxes, etc) or we may purchase the car at the discounted price of $21, 500 and finance through the bank at an interest rate of 4.5%. Which option should...
4. You need to borrow $7,500 to buy a motorcycle. The dealer offers an APR of 9.25% to be paid off in monthly installments over 3 years. (a) What is the monthly payment? (7) (b) How much total interest did you pay? (7)
Emile bought a car for $27,000 three years ago. The loan had a 5 year term at 8% interest rate, and Emile has been making monthly payments for three years. How much does he still owe on the car? (Hint: first you will need to figure out the monthly payment on the 5 year loan.)