Question

29) You want to buy a car from ABC Inc. The cost of the car is...

29) You want to buy a car from ABC Inc. The cost of the car is $29,900. The sales tax, destination charges, plate & registration will add 9.5% to the cost of the car. You will finance the entire amount for 60 months at an APR of 3.9% with the first payment due immediately. What are your monthly payments?

Please show the calculations. Thank you in advance :)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Cost of the car = $ 29,900 + 9.5 % $ 29,900 (  sales tax, destination charges, plate & registration)

Cost of the car = $ 32740.5

The following formula is used to calculate the monthly payment that is due immediately.

Monthly payment = $ 599.54

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 will want to buy a car for $23,000 plus 13% tax or $25,990. You are...
You will want to buy a car for $23,000 plus 13% tax or $25,990. You are required to pay a down payment for $6k but need to finance the remaining amount. The company helps finance at 2.49% APR, and since you want to pay on a monthly basis, the company will compound this rate monthly. Calculate the monthly loan payments if the loan is amortized over 60 months.
You want to buy a car. The car costs $101,500. The Tesla dealer offers to finance...
You want to buy a car. The car costs $101,500. The Tesla dealer offers to finance your car with a 60 month loan at an APR of 12.75%, compounded monthly. Your first payment will be due tomorrow. If you take this loan, what will your monthly car payment be?
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 $1,600 and can afford monthly payments of at most $750. a. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum Price = b. How much can you afford if you finance the purchase...
You want to buy a new sports car from Muscle Motors for $37,000. The contract is...
You want to buy a new sports car from Muscle Motors for $37,000. The contract is in the form of an annuity due for 36 months at an APR of 9.50 percent.    What will your monthly payment be?
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 want to buy a new sports car from Muscle Motors for $36,000. The contract is...
You want to buy a new sports car from Muscle Motors for $36,000. The contract is in the form of an annuity due for 60 months at an APR of 9.75 percent.    What will your monthly payment be? Multiple Choice $739.26 $760.47 $754.34 $769.43 $716.63
You want to buy a new sports coupe for $74,200, and the finance office at the...
You want to buy a new sports coupe for $74,200, and the finance office at the dealership has quoted you a loan with an APR of 6.6 percent for 60 months to buy the car. 1.What will your monthly payments be? (Round 2 decimals) 2. What is the effective annual rate on this loan? (Round 2 decimals)
You want to buy a new sports coupe for $75,500, and the finance office at the...
You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you a loan with an APR of 7.9 percent for 72 months to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded...
You decide to buy a new car, a new BMW 325, because you think you'll look...
You decide to buy a new car, a new BMW 325, because you think you'll look hip driving it. The car cost $70,000, but you'll only need to finance $62,500. You can finance it at 4.1% APR for 6 years. What will your monthly payments be? Can you please Show how to calculate that in Excel with the Right Formula? Thank you!
You want to buy a car, and a local bank will lend you $25,000 to be...
You want to buy a car, and a local bank will lend you $25,000 to be repaid monthly over 5 years at an APR of 4%. What is the total amount of interest paid during the first two months?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT