Question

Monthly loan payments  Personal Finance Problem   Tim Smith is shopping for a used luxury car. He has found one priced at

$ 29 comma 000$29,000.

The dealer has told Tim that if he can come up with a down payment of

​$5 comma 4005,400​,

the dealer will finance the balance of the price at a

66​%

annual rate over

22

years

​(2424

​months).  ​(Hint: Use four decimal places for the monthly interest rate in all your​calculations.)

a.  Assuming that Tim accepts the​ dealer's offer, what will his monthly​ (end-of-month) payment amount​ be?

b.  Use a financial calculator or spreadsheet to help you figure out what​ Tim's

monthly

payment would be if the dealer were willing to finance the balance of the car price at an annual rate of

3.2%

Answer 1

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