Question

T.... 1 of 10 (0 complete) ▸ ... The Shelby Cobra retails for $47,684 (all taxes included). What are the monthly loan payments for the car if you make a down payment of $4,001, the term is 5 years and the APR is 6.5%? (Car loan payments are made at the end of each month.) What is the amount of the monthly payment? Type a number to the nearest cent.)

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

А В D 1 Car Price $47,684.00 $4,001.00 2 Down payment Loan Amount APR Term(years) Monthly interest rate No. of monthly payment $43,683.00 4 6.50% 6 5 7 0.5417% 8 60 $854.71 Monthly Payment 9 10 Present value of Annuity Annual interest rate No. of Annual payment 11 2 1000 12 10% 13 5 $263.80 Annual Anntty Payment 14 15 $25,000 3 Perpetual Payment 16 17 Discount rate 14% $178,571 Present value of perpetuity 18 19 4 Annual payment Interest rate No. of Annual payment 20 200 21 15% 22 5 $670.43 Present value of Annuity 23 24 25 26 LO

Cell reference -

A В C 1 47684 4001 Car Price 2 1 Down payment 3 Loan Amount APR |ЕC2-СЗ 0.065 5 -C5/12 |-Сб*12 4 Term(years) Monthly interest rate No. of monthly payment 6 7 8 -РMT(С7,C8,-С4,0) Monthly Payment 9 10 Present value of Annuity Annual interest rate No. of Annual payment 11 2 1000 0.1 5 12 13 -РMТ(C12,С13,-С11,0) Annual Annuity Payment 14 15 Perpetual Payment Discount rate Present value of perpetuity 25000 0.14 16 3 17 ЕC16/C17 18 19 Annual payment Interest rate 200 20 4 0.15 21 22 No. of Annual payment =PV(C21,C22,-C20,,0) 23 Present value of Annuity 24 25 LC LC

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.