9.) You are buying a car that cost $26,500. You make payments of $412 each month...
9.) You are buying a car that cost $26,500. You make payments of $412 each month for 4 years. The interest rate charged on the amount owed after you made the down payment is 2.9% per year. What will be the amount of your down payment? show work
Homework Answers
To find out the amount of your down payment, it is required to calculate the present value of the loan that results in a payment of $ 412 each month for four years.
The present value is calculated as follows:-
Present value of the loan = $18,650.84
The amount of your down payment = $ 26,500 - $18,650.84
The amount of your down payment = $7,849.16
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