Brenna wants to buy a car that is available at two dealerships. The price of the car is the same at both dealerships. Best Buggies would let her make quarterly payments of $2,250 for 5 years at a quarterly interest rate of 3.82 percent. Her first payment to Best Buggies would be due immediately. If California Cars would let her make equal monthly payments of $920 at a monthly interest rate of 1.35 percent and if her first payment to California Cars would be in 1 month, then how many monthly payments would Brenna need to make to California Cars? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).
First we have to find the price of the car/loan amount by using PV function in EXCEL
nper=number of periods=5*4=20 (4 quarters in a year)
type=1 (because the payments to made immediately)
Now use this loan amount to find the monthly payments using NPER function in EXCEL
type=0 (because payments made at the end of the period)
It takes 47.82 monthly payments to repay the loan amount of 32258.39
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