Question

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

Answer 1

Monthly PMT	=PMT(E53,E55,C54,,0)
	CAR A
Price of Car	24,000	Annual Interest Rate	6.90%
Down Payment	3,000	Monthly Interest Rate	0.58%
Loan Amount	-21,000.00	Years for Loan	4
Monthly Payment	501.90	Total Months	48
Monthly Payment	501.90	Periods per Year	12
Total PMT	24,091.08
Interest	3,091.08
APR ( per month)	0.575%	=RATE(E55,C55,C54,,0)
APR( per annum)	6.90%
CAR B
Price of Car	215,000	Annual Interest Rate	6.90%
Down Payment	1,500	Monthly Interest Rate	0.58%
Loan Amount	-213,500.00	Years for Loan	6
Monthly Payment	3,629.72	Total Months	72
Monthly Payment	3,629.72	Periods per Year	12
Total PMT	261,339.81
Interest	47,839.81
APR ( per month)	0.575%	=RATE(E65,C65,C64,,0)
APR( per annum)	6.90%

Please provide feed back to my answer if it is correct. thank you in advance