Question

**Question 5:**

- A university graduate bought a new car. The cash price is $ 36,000; he made a $ 2,000 down payment on it. The bank's loan was for 20 months. Finance charges totaled $ 10,000. What was the monthly payment?

- A steel factory bought a new equipment. The cash price of the
equipment is $ 18,000, putting down $ 7,600 and financing the
remainder with 20 monthly payments of
**$ 578**each. Find the APR by table lookup.

C. A university graduate bought a new car. The cash price is $19,000; he made a $ 1,400 down payment on it. The bank's loan was for 20 months. Finance charges totaled $ 4,900. What was the monthly payment?

Answer #1

A. Answer :

(i)Cash price of the vehicle = 36,000

(ii)Down payment made =2,000

(iii) Remaining amount to be paid (i-ii)=34,000

(iv) Total Finance cost = 10,000

(v) Total payment to be made (iii+iv) =44,000

vi) Payment per month to be made = 44,000/20= 2200/-

C. Answer :

(i)Cash price of the vehicle = 19,000

(ii)Down payment made =1,400

(iii) Remaining amount to be paid (i-ii)=17,600

(iv) Total Finance cost = 4,900

(v) Total payment to be made (iii+iv) = 22,500

vi) Payment per month to be made = 22,500/20= 1125/-

Kim bought a new car for $28,000. She paid a 20% down payment
and financed the remaining balance for 36 months with an APR of
4.8%. Assuming she made monthly payments, determine the total cost
of Kim's car. Round your answer to the nearest cent, if
necessary

2. An auto dealership is advertising that a new car with a
sticker price of $19,140 is on sale for $16,999 if you pay in cash,
or you get a finance for 60 months with a monthly payment of $319.
Note that 60 payments × $319 per payment = $19,140, which is the
sticker price of the car. By allowing you to pay in a series of
payment (starting one month from now) instead of $16,999 in cash,
the dealer...

You just bought a new car for $27,718. The car loan contract
specifies that the interest rate on your car loan is 4.5% APR
compounded monthly, your down-payment is $2,718, and the term for
the loan is 5 years. You must make monthly payments on your loan
starting in one month's time. What is the monthly payment?

Lupé made a down payment of $8000 toward the purchase of a new
car. To pay the balance of the purchase price, she has secured a
loan from her bank at the rate of 5%/year compounded monthly. Under
the terms of her finance agreement she is required to make payments
of $440/month for 36 months.
What is the cash price of the car? (Round your answer to the
nearest cent.)

Your friend wants to purchase a new TESLA car for $65,000. All
wheel drive, Long range battery, and dual motors. He has no
savings, so he needs to finance the entire purchase amount. With no
down payment, the interest rate on the loan is 10 % and the
maturity of the loan is 6 years. His monthly payments will be
$1673.33. He earns $1600.00 a month. He has a credit card limit of
$13,000 and an interest rate of 12%....

A man wants to buy a new car that has a cash price of $20,000.
He makes a down payment of $2,000, and will have payments of $360
that are paid once a month for 5 full years.
1. What is the approximate APR for this car? (7.9% , 5.0% , or
3.5%)
2. How much is the total finance charge the man will end up
paying for this car? ($3,600 , $6,320 , or $1,600)

Pablo bought a new Mercedes for $35,000. He put a down payment
of 10% and financed the rest for 4 years at an interest rate of
7.2%
1. What is his financed amount?
2. What is his monthly payment
3. He wants a $450 monthly car payment. Using the same loan
terms, what priced car can he annually afford?
Please show work. Thank you

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...

a) Bubba bought a car for $60,000, putting down $20,000 cash and
financing the remainder. How much are his monthly car payments if
he financed the car for 6 years and paid a nominal annual interest
rate of 6 percent?
b) How much will his payments be if he makes the payments at the
beginning of each month?

My son recently purchased a new car that was priced at $28,000.
He was given two purchase options. The first was a 0% loan for 48
months on the full purchase price. However, if he paid cash he
would get a 10% discount on the car making the purchase price
$25,200.
a) What is the loan payment if he takes
the 0% loan?
b) Comparing the first option to the
second option, what is the actual interest rate...

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