4. You have decided to buy a car, the price of the car is $18,000. The car dealer presents you with two choices: (A) Purchase the car for cash and receive $2000 instant cash rebate - your out of pocket expense is $16,000 today. (B) Purchase the car for $18,000 with zero percent interest 36-month loan with monthly payments. Market interest rate is 4%. Which option above is cheaper? How much do you save?

Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The​ new-car option: The new car costs ​$26,000 and can be financed with a four​-year loan at 7.75​%. The​ used-car option: A​ three-year old model of the same car costs ​$16,000 and can be financed with a four​-year loan at 5.28​%. What is the difference in monthly payments between financing the new car and financing the used​ car?  ​(Round to the nearest cent as​ needed.)

You have decided to purchase a new car. The car costs $27,500. The dealer is offering to finance the car for 6 years at a rate 8.75%. How much would your monthly payment be?   Question 3 options:   $492   $495   $504   $518   $511

Please solve using Excel and show formulas. You have decided to buy a car with price tag of $60,000 but you are able to negotiate the price down to $58,000.  You have $5,000 saved, so you need to borrow $53,000 in a 5-year loan from your bank (your bank offers lower rates than the auto-dealer) at a 4.5% APR (annual rate). How much will you owe to the bank after 3 years?

You went to the car dealer to lease a car.  The car is valued at $30,000 and you can drive away without putting any money down.  The dealer offers you a 5 year lease with a $5,000 residual payment at the end if you want to buy the car.  Assuming monthly payments of $508.32, what is the implied APR?   Your answer should be close to a round number.  Use a % symbol and round to the nearest 1 decimal point.....3.0% would be the form of a correct answer.

2.53. You have bought a car. The car dealer offers two payment plans: (A) Make 48 monthly payments of $130 each, or (B) Make 36 payments of $165 each. If the time value of money is 12% per year, which plan is cheaper for you?

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have an 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.

You are purchasing a new car for $27,600.  The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down.  If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months. The rebate offer is $1900, and you can obtain a car loan at your local bank for the balance at 2.03% compounded monthly for 48 months.  If you choose the rebate, what is your monthly payment?  $  _______ .  Round to the nearest dollar.

You are interested in purchasing an automobile but you require financing. The dealer has provided you with several loan options to finance the purchase. Your market rate of return for the risk that you pose various lenders is 7%. The automobile that you want to purchase has a sticker price of $35,000 and a competitive market value of $31,000.    Here are your loan options: Loan 1:   loan has a term of 60 months, a contractual rate of interest of 8% and requires a down payment of $1,500 for the purchase of the car. The loan allows you to claim a rebate of $1,000 on the car at purchase. Loan 2:   The loan has a term of 72 months, a contractual rate of 7.5% and requires a down payment of $1,000 for the purchase of the car.   The loan allows you to claim a $500 rebate. Loan 3:   The loan has a term of 36 months a contractual interest rate of 0% and requires $4,000 down.   No rebate is available for this option. What is the value created or value destroyed for Loan 3 (round to the nearest…

Suppose you are in the market for a new car worth $18,000. You are offered a deal fo make a S1,800 down payment now and to pay the balance in equal end-of-month payments of $421.85 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 11.75% compounded monthly. What would be your monthly payment to pay off the loan in four years?b. If you were to accept the dealers offer, what would be the effective rate of interest per month charged by the dealer on your financing?