Question

​Ford's current incentives for customers looking to buy a Mustang include either financing at an APR...

​Ford's current incentives for customers looking to buy a Mustang include either financing at an APR of 5.1 percent compounded monthly for 48 months or $ 1,300 cash back.​ Let's assume Suzie Student wants to buy the premium Mustang​ convertible, which costs $ 26 comma 000​, and she has no down payment other than the cash back from Ford. If she chooses the ​$1,300 cash​ back, Suzie can borrow from the VTech Credit Union at an APR of 7.1 percent compounded monthly for 48 months. What will Suzie​ Student's monthly payment be under each​ option? Which option should she​ choose?

a. If Suzie chooses 5.1 percent financing for 48 months to buy the premium Mustang​ convertible, which costs ​$26,000​, what will her monthly payment​ be? ​$ ​(Round to the nearest​ cent.)

b. If Suzie chooses ​$1 comma 300 cash back to buy the premium Mustang convertible and borrow ​$24,700 fom the VTech Credit Union at an APR of 7.1 percent compounded monthly for 48 ​months, what will her monthly payment​ be? ​$ ​(Round to the nearest​ cent.)

c. Which option should Suzie Student​ choose?  ​(Select the best​ choice.)

A. Choose low interest rate financing because the monthly payment under this option is lower.

B. Choose cash back financing because the monthly payment under this option is lower

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR

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
Harrison has two options for buying a car. Option A is 2.1% APR financing over 60...
Harrison has two options for buying a car. Option A is 2.1% APR financing over 60 months and Option B is 4.1% APR over 60 months with $1600 cash back, which he would use as part of the down payment. The price of the car is $26,064 and Harrison has saved $2600 for the down payment. Find the total amount Harrison will spend on the car for each option if he plans to make monthly payments. Round your answers to...
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...
1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8...
1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8 percent (APR), compounded quarterly (every 3 months). How much interest did John earn over the 15 years? a. $2,416.08 b. $45,620.62 c. $24,000.00 d. $28,318.95 e. $65,620.62 2. You are running short of cash and really need to pay your tuition. A friend suggests that you check out the local title pawn shop. At the shop they offer to loan you $5,000 if you...
Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work...
Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris's analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identified a suitable structure that is currently for sale, and they believe they can buy and refurbish it for about $40 million. Mark,...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers,...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers, Inc. 2001 Income Statement (OMR in millions) Net sales 9,625 Less: Cost of goods sold 5,225 Less: Depreciation 1,890 Earnings before interest and taxes 2,510 Less: Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income 1,079 Addition to retained earnings 679 Dividends paid 400 Kuipers, Inc. 12/31/00 and 12/31/01 Balance Sheet (in OMR, in millions) 2000 2001 2000 2001 Cash 1,455 260...
Homeplate Lexi Taylor looked out the window of her Rexburg apartment and marveled at how her...
Homeplate Lexi Taylor looked out the window of her Rexburg apartment and marveled at how her life had changed in the past few months. Since launching Homeplate a little over a year ago, she had grown from a one-person operation preparing meals in the local YMCA kitchen to a fast growing meal preparation and delivery service, with nearly 3,000 regular customers and strong growth and profit potential. Lexi had gone through raising a seed round of capital and was now...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
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...
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...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? 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,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT