Question

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 has decided to buy the car with the lower net cost to her, which car should she purchase? (Round numerical values to the nearest cent.) net cost of Car A $ net cost of Car B $ car she should purchase

Answer #1

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 $23,500. 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 costs $23,000, and Car B costs $23,200. 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...

Your parents ask your advice on financing a new car purchase.
BMW has been running a national sales promotion that gives buyers
of a new car (BMW 435ix) the choice of a $2,000 rebate or 0.6% APR
financing for 60 months. In addition, the local BMW dealer is
offering 2.8% APR financing for 60 months on all car purchases
through a local bank, which could be used if your parents decide to
take the rebate and use it as an...

Rondo is in the market for a new car. He has narrowed his search
down to 2 models. Model A costs $35,000 and Model B costs $30,000.
With both cars he plans to pay cash and own them for 4 years before
trading in for a new car. His research indicates that the trade in
value for Model A after 4 years is 57% of the initial purchase
price, while the trade in value for Model B is 43%. The...

Kerri James is considering the purchase of a car. She wants to
buy the new VW Beetle, which will cost her $17,600. She will
finance 90% of the purchase price (i.e., make a 10% down payment)
at an interest rate of 5.9 percent, with monthly payments over
three years. How much money will she still owe on the loan at the
end of one year(that is, immediately after she makes the 12th
payment on her car loan)?

You are considering buying a new car for $37,000. If you
purchase the car you will pay $7,000 of the purchase price as a
down payment. Below are the two options to choose from.
Option 1: Pay off the amount borrowed to purchase the car with a
5 year loan, and the annual percentage rate (APR) will be 0%.
Option 2: Receive a $2,000 instant rebate. This will lower your
loan amount. Pay off the amount borrowed to purchase the...

Kerri James is considering the purchase of a car, which will
cost her $24,600. She will borrow the entire purchase price and
make monthly payments over the next six years. The first payment is
due next month and the annual interest rate is 3.00%. She will owe
$____ on the car immediately following the 18th payment.
A. 18,858.19
B. 18,531.57
C. 20,757.33
D. 19,184.00
E. 23,258.56

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...

A car company offering three purchase to buy new car
plan A : $5000 cash immediately
plan B : $1500 down and 36 monthly payment of $116.25
plan C : $1000 DOWN AND 48 MONTHLY PAYMENTS OF $V 120.50
IF You expect to keep the car for five years and the interest
rate of the money is 18% compounded monthly
which payment plan should you choose ?

Katie plans to purchase a new car. She decides to borrow
$25,000 from her friend at 8% per year compounded monthly for 4
years. She plans to repay the loan with 48 equal monthly payments.
How much is the monthly payment?
How much interest is in the 23rd payment?
What is the remaining balance immediately after she made her
37th payment?
Later, she became able to pay off the loan at the end of the
30th month. She has not...

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