you are buying a $35,000 car with 20% down, no sales tax, and by financing the balance for 5 years. If interest is 4.5% and monthly payment is $550, is this a good deal or bad deal? – i.e. Are you paying more than you owe? Prove your point by showing how you arrived at your conclusion. please please provide work and if possible break it down to simpler terms so i can understand and explain! thank you
you are buying a $35,000 car with 20% down, no sales tax, and by financing the...
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?
8.6.5 Que 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 $25,000 and can be financed with a five-year loan at 6.12% The used car option: A three-year old model of the same car costs $17,000 and can be financed with a three-year loan at 6.417 What is the difference in monthly payments between financing the new car and financing the used car? Use...
.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...
You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a. compounded annually. a. What is your annual deposit amount? b. Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest...
Question 1: You are buying a new $40,000 car. You must put down 10% and then finance the remainder for 5 years @ 8%. What is your monthly payment? A. $811.06 B. $849.88 C. $729.95 D. $770.50 Question 2: Refer to the previous question. If you wanted to pay off the car immediately after you made the 43rd payment, how much would you have to pay the finance company? A. $6,868.50 B. $11,695.02 C. $9,767.42 D. Insufficient information to determine
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...
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...
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)...
You wish to buy a new car and narrow your choice to Saturn, Cavalier, and Hyundai. Each company offers you its best deal: Saturn $13,990 $1000 down 3.5% interest per year for up to 60 month Cavalier $13,550 $1500 down 4.5% interest per year for up to 60 month Hyundai $12,400 $500 down 6.5% interest per year for up to 48 month You are able to spend at most $475 a month on a car payment. a) Formulate a dynamical...
You are in the car traveling down the road and suddenly a bike jumps out in front of you 50 ft away. Luckily your excellent anti-lock breaks stop the car in 20 ft. How far would you have needed to break if you had been going twice as fast? I understand the answer is 80, but I don't understand how to properly use the equation: v^2=vo^2+2aΔx Could someone please explain what each piece of this equation means and how to...