Question

The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 8%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 24 mo? Over a period of 48 mo? (b) What will the interest charges be if she elects the 24-mo plan? The 48-mo plan?

Answer #1

The price of a new car is $12,000. Assume that an individual
makes a down payment of 25% toward the purchase of the car and
secures financing for the balance at the rate of 5%/year compounded
monthly. (Round your answers to the nearest cent.)
(a) What monthly payment will she be required to make if the car
is financed over a period of 48 months? Over a period of 60
months?
48 months
$
60 months
$
(b) What will...

Joe secured a loan of $13,000 four years ago from a bank for use
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it through monthly payments over 15 years at the same interest
rate. Find the size of the monthly payments he will be required to
make. (Round your answer to the nearest cent.)
$...

Lupé made a down payment of $8000 toward the purchase of a new
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the terms of her finance agreement she is required to make payments
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What is the cash price of the car? (Round your answer to the
nearest cent.)

Kim bought a new car for $28,000. She paid a 20% down payment
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You have saved $3,000 for a down payment on a new car. The
largest monthly payment you can afford is $300. The loan will have
a 9% APR based on end-of-month payments. What is the most expensive
car you can afford if you finance it for 48 months? For 60 months?
Do not round intermediate calculations. Round your answers to the
nearest cent.
Financed for 48 months: $
Financed for 60 months: $

You have saved $5,000 for a down payment on a new car. The
largest monthly payment you can afford is $350. The loan will have
a 9% APR based on end-of-month payments. What is the most expensive
car you can afford if you finance it for 48 months? For 60 months?
Do not round intermediate calculations. Round your answers to the
nearest cent.
Financed for 48 months: $ ___
Financed for 60 months: $ ___

You have saved $5,000 for a down payment on a new car. The
largest monthly payment you can afford is $500. The loan will have
a 15% APR based on end-of-month payments. What is the most
expensive car you can afford if you finance it for 48 months? For
60 months? Do not round intermediate calculations. Round your
answers to the nearest cent.
Financed for 48 months: $
Financed for 60 months: $

Paula is considering the purchase of a new car. She has narrowed
her search to two cars that are equally appealing to her. Car A
costs $25,000, and Car B costs $25,500. The manufacturer of Car A
is offering 0% financing for 48 months with zero down, while the
manufacturer of Car B is offering a rebate of $2000 at the time of
purchase plus financing at the rate of 3%/year compounded monthly
over 48 months with zero down. If...

Paula is considering the purchase of a new car. She has narrowed
her search to two cars that are equally appealing to her. Car A
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manufacturer of Car B is offering a rebate of $2000 at the time of
purchase plus financing at the rate of 3%/year compounded monthly
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Paula is considering the purchase of a new car. She has narrowed
her search to two cars that are equally appealing to her. Car
A costs $23,000, and Car B costs $23,200. The
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offering a rebate of $2000 at the time of purchase plus financing
at the rate of 3%/year compounded monthly over 48 months with zero
down. If...

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