Question

Suppose that you decide to buy a car for ​$61,000​, including taxes and license fees. You...

Suppose that you decide to buy a car for ​$61,000​, including taxes and license fees. You saved $ 11000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is ​$5000 off the price of the​ car, followed by a four​-year loan at 7.28%. Incentive B does not have a cash​ rebate, but provides free financing​ (no interest) over four years.

The difference in monthly payments between the two offers is _____

Which incentive is the better deal?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
suppose that you decide to buy a car for $25635, including taxes and license fees. you...
suppose that you decide to buy a car for $25635, including taxes and license fees. you saved $5000 for a down payment and can get a four year car loan at 6.2%. The monthly payment is: The total interest for the loan is:
An advertisement from a car dealer offers the following choice: A 2% annual interest rate on...
An advertisement from a car dealer offers the following choice: A 2% annual interest rate on a six-year car loan (monthly payments) for a car priced at $30,000 or a $5000 discount off the price (i.e. $25,000 price tag) with you supplying your own financing. Assume that you can borrow 100% of the purchase price and that the annual interest rate your bank would charge you on a six-year loan is 5%. The car loan is similar to a mortgage...
You plan to buy a Honda car which currently costs $22,000. The car dealer offers the...
You plan to buy a Honda car which currently costs $22,000. The car dealer offers the following two options: you can either borrow the entire amount at low interest rate of 1.99% per year compounded monthly for 36 months or get a cash rebate of $1,000 and borrow at 3.99% per year compounded monthly for 36 months. Which option is better for you?
Using Microsoft Excel: Suppose you are in the market for a new car worth $22,000. You...
Using Microsoft Excel: Suppose you are in the market for a new car worth $22,000. You are offered a deal to make a $2,000 down payment now and to pay the balance in equal end-of-month payments of $505.33 over a 48-month period. Consider the following situations. (a) Instead of going through the dealer’s financing, you want to make a down payment of $1,800 and take out an auto loan from a bank at 9.2% compounded monthly. What would be your...
TVM Assignment Please answer the question in an excel spreadsheet with the formulas showing. Part VI:...
TVM Assignment Please answer the question in an excel spreadsheet with the formulas showing. Part VI: Car Loan You are looking to buy a 2018 Ford Focus Titanium Hatchback with sunroof and leather seats at a price of $26,000. Being a college student, you have cash to pay taxes, title, license and fees but your parents offer to give you 10% of the price, $2,600, as a down payment and you need to finance the remainder of $23,400. You smartly...
In this make or buy problem, you should compute the total cost of making a particular...
In this make or buy problem, you should compute the total cost of making a particular part and the total costs of buying the same part. Try following the solutions steps: Determine the parameters of the make cost function - the variable costs per unit and the fixed costs. Determine the fixed costs that are avoidable and the fixed costs that are unavoidable. Determine the buy price. Determine the alternative use of the idle resources under the buy, Note that...
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing...
The following article does a good job of breaking down the advantages/disadvantages of leasing vs. purchasing vehicles: Title: Pros and Cons of Leasing vs. Buying a Vehicle Source: http://www.investopedia.com/articles/pf/05/042105.asp Buying a car can be overwhelming. In fact, the pleasure of getting a new car can be quickly clouded during the financing decision-making process and price negotiations. Besides price haggling, many car shoppers are plagued with the decision to leaseor buy. Which financing decision is right and why? This article will...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT