Question

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)

Answer #1

*** Car Price = Present value of Monthly payments + Down
Payment = $20266.70**

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!

You are looking to buy a car. You can afford $520 in monthly
payments for four years. In addition to the loan, you can make a
$1,700 down payment. If interest rates are 8.75 percent APR, what
price of car can you afford (loan plus down payment)? (Do
not round intermediate calculations and round your final answer to
2 decimal places.)

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 ?

A loan of $4500 was received on January 1, 2011. Quarterly
payments to settle the debt begin on April 1, 2014 and end on
October 1, 2018. If the interest rate on the loan was 8% compounded
quarterly, determine the size of the payments. ($364.01) Cannot use
Excel.

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?

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)?

Compare the costs of each car. Calculate the interest to be paid
on both, month payments, total payments and the APR? Car A
??????Car B $24,000 purchase price????$21,5000 purchase price
$3,000 Down payment ????$1,500 Down payment 2.9% Interest rate
?????6.9% Interest rate 4 year loan with monthly payments???6 year
loan with monthly payments

Jessica is planning to buy a new car. The car price is $28,000
with a down payment of S10,000. Jessica was able to save the
$10,000 for her dream car. If the monthly payment is $500 for 5
years, what is the annual nominal interest rate on this loan? What
is the annual effective interest rate? Use interpolation if
necessary. Excel solution is NOT accepted. Round the answer to 2
decimal places.
Please dont use PVIFA and show all work.

You are borrowing $5,230 to buy a car. The terms of the loan
call for monthly payments for 5 years at a 5.50 percent interest
compounded monthly. What is the amount of each payment?
a.$75.93
b. $95.67
c. $99.90
d. $97.16
e. $75.38

a)Maria wants to buy a car. She has saved $2,500 for a down
payment, and she can afford payments of $250 per month for 5 years.
Her credit union has offered her an auto loan that charges 4.8% per
year compounded monthly for 5 years. What is the largest loan she
can afford? What is the most expensive car she can afford?
b) Find the interest rate needed for an investment of $5100 to
triple in 6 years if interest...

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