price of car | 27125 |
less:old car exchange | 4120 |
less: down payment | 1000 |
amt of loan | 22005 |
yearly payment | 468.76*12= | 5625.12 |
total payment | 5625.12*5= | 28125.6 |
Total payment - amt of loan = interest
28125.6-22005= $6120.6
2. Preet lives in Prince Albert, Saskatchewan. He is buying a new car from a dealer. • The price of the car is $271...
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...
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...