You are looking at buying a car. You negotiate the price of the car down to...
You are looking at buying a car. You negotiate the price of the car down to $16,000. You have $6,000 in cash, so you’ll borrow $10,000 to purchase the car. The dealer offers you a loan that has an APR of 4%, compounded monthly, with monthly payments starting next month and lasting 5 years. What would be the monthly payment?
Homework Answers
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
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You are looking at buying a car. You negotiate the price of the
car down to...
You are considering buying a car worth $30,000. The dealer, who is anxious to sell the...
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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Problem 2-Buying a Car You see a car that you absolutely must have. The price tag...
Problem 2-Buying a Car You see a car that you absolutely must have. The price tag says $18,450, but you want to keep your payment low over a 4-year period. Since you want to make payments no larger than $250 at the end of every month, you must find a bank to finance a loan for you. The bank you find charges interest at a rate of 6.99% compounded monthly. Use this information to find the following: The amount you...
You are looking to buy a car. You can afford $730 in monthly payments for five...
You are looking to buy a car. You can afford $730 in monthly payments for five years. In addition to the loan, you can make a $830 down payment. If interest rates are 10.00 percent APR, what price of car can you afford (loan plus down payment)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value To borrow $3,700, you are offered an add-on interest loan at 9.3 percent with 12 monthly payments....
Problem #5: You want to buy a car that costs $21,000. The dealer wants a 10%...
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You are buying a home and have saved $45,000 for a down payment. The house costs...
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Show all excel formulas used Ex. 3 JIf a dealer offers you a car at $275...
Show all excel formulas used
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...
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the...
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year loan. with no money down and no monthly payments during the first year. After the first year, you will pay $1,350 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.2 percent. What will be...
Mrs. Landingham recently purchased a new car. In addition to her down payment she will borrow...
Mrs. Landingham recently purchased a new car. In addition to her
down payment she will borrow $10,000 to pay for the car, which she
will pay back with 60 equal monthly payments over the next five
years. The stated annual interest rate is 12%, compounded monthly.
If she receives the loan today and makes her first payment one
month from today, what will be the amount of her first payment?
I've tried so many times and I don't have any...
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...
Problem 2-Buying a Car You see a car that you absolutely must have. The price tag says $18,450, but you want to keep your payment low over a 4-year period. Since you want to make payments no larger than $250 at the end of every month, you must find a bank to finance a loan for you. The bank you find charges interest at a rate of 6.99% compounded monthly. Use this information to find the following: The amount you...
You are looking to buy a car. You can afford $730 in monthly payments for five years. In addition to the loan, you can make a $830 down payment. If interest rates are 10.00 percent APR, what price of car can you afford (loan plus down payment)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value To borrow $3,700, you are offered an add-on interest loan at 9.3 percent with 12 monthly payments....
Problem #5: You want to buy a car that costs $21,000. The dealer wants a 10% down payment and quotes a 15% APR for a 72-month loan. (a) What will be your monthly payment if the payment is made at the end of each month from the day you buy the car? (b) What will be your monthly payment if you tell the dealer that you will not make any down payment, but you will make your payments at the...
Show all excel formulas used
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...
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year loan. with no money down and no monthly payments during the first year. After the first year, you will pay $1,350 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.2 percent. What will be...
Mrs. Landingham recently purchased a new car. In addition to her
down payment she will borrow $10,000 to pay for the car, which she
will pay back with 60 equal monthly payments over the next five
years. The stated annual interest rate is 12%, compounded monthly.
If she receives the loan today and makes her first payment one
month from today, what will be the amount of her first payment?
I've tried so many times and I don't have any...
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