Question

A car company offering three purchase to buy new car plan A : $5000 cash immediately...

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 ?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Kindly Upvote!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are planning to acquire a new car with a negotiated purchase price of $50,000. You...
You are planning to acquire a new car with a negotiated purchase price of $50,000. You prefer to turn your cars over after 4 years. You have two financing choices: lease or borrow & buy. You can obtain a four-year loan at 6% annual rate (which means 0.5% monthly rate) for the entire purchase price of the car. A four-year lease (equal monthly lease payments start immediately) requires a down payment of $4,000. The market value of the car is...
Paula is considering the purchase of a new car. She has narrowed her search to two...
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...
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...
You want to buy a new car, but you can make an initial payment of only...
You want to buy a new car, but you can make an initial payment of only $1729 and can afford monthly payments of at most $517. If the interest rate is 9.4 percent per year compounded monthly and you finance the purchase over 48 months, what is the maximum price you can pay for the car? 25938.83 18787.33 25587.3 19526.21 22346.81
You are planning to acquire a new car with a negotiated purchase price of $50,000. You...
You are planning to acquire a new car with a negotiated purchase price of $50,000. You prefer to turn your cars over after 4 years. You have two financing choices: lease or borrow & buy. You can obtain a four-year loan at 6% annual rate (which means 0.5% monthly rate) for the entire purchase price of the car. A four-year lease (equal monthly lease payments start immediately) requires a down payment of $4,000. The market value of the car is...
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly...
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. The monthly payments are $383.14. a) How much interest is in the 23rd payment? b) what is the remaining balance after the 37th payment? c) Three and a half years into the loan, you decide to pay it off. You have not made the payment due at that time. What...
To buy a brand-new car, 60 monthly payments of $325.00 will be needed to settle the...
To buy a brand-new car, 60 monthly payments of $325.00 will be needed to settle the car loan with a $4500 down payment. Determine the price of the car if the interest rate is 8.7% compounded monthly. ($20,266.70)
After deciding to buy a new car, you can either lease the car or purchase it...
After deciding to buy a new car, you can either lease the car or purchase it with a three-year loan. The car costs $30,000. The dealer has a lease program where you pay $100 today and $400 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at a 8 percent APR. You believe that you will be able to sell the car for $20000...
To buy a brand-new car, 60 monthly payments of $325.00 will be needed to settle the...
To buy a brand-new car, 60 monthly payments of $325.00 will be needed to settle the car loan with a $4500 down payment. Determine the price of the car if the interest rate is 8.7% compounded monthly. ($20,266.70) Cannot use Excel!
The price of a new car is $12,000. Assume that an individual makes a down payment...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT