Darla purchased a new car during a special sales promotion by the manufacturer.
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A: Answer:
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $18,000 at a rate of 8%/year compounded monthly. Her bank is now charging 11.4%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.)
| interest paid to manufacturer | $ |
| interest paid to bank | $ |
| savings | $ |
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- Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $22,000 at a rate of 4.6%/year compounded monthly. Her bank is now charging 6.6%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer interest paid to bank savingsDarla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $23,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.6%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank?Blake bought a new car and financed $15,000 to make the purchase. He financed the car for 48 months with an APR of 4.5%. Assuming he made monthly payments, determine the total interest Blake paid over the life of the loan. Round your answer to the nearest cent, if necessary.
- Nona purchased a new car earlier today for $32,000. She financed the entire amount using a five-year loan with a 3% interest rate (compounded monthly). (a) Compute the monthly payments for the loan. (b) How much will Nona owe on the loan after she makes payments for two years (i.e., after 24 payments)?Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and financed the $12,000 balance payable in 4 years but in monthly installments. The interest rate is 9% compounded monthly, and the loan will be repaid in equal monthly instalments for first two years and double it on the next two years. What is Elin's monthly car payment?Lupe made a down payment of $2000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 13%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $250/month for 24 months. What was the cash price of the car? (Round your answer to the nearest cent.) $
- Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed the balance over 48 months using a loan with a 12 percent annual nominal rate of interest. What are her monthly payments?Elin purchased a used car for $10,500. She wrote a check for $2,500 as a down payment for the car and financed the $8,000 balance. The annual percentage rate (APR) is 6% compounded monthly, and the loan is to be repaid in equal monthly installments over the next three years. Which of the following is most near to Elin's monthly car payment? Choose the correct answer below. OA. Elin's monthly car payment is $205. OB. Elin's monthly car payment is $320. OC. Elin's monthly car payment is $487. OD. Elin's monthly car payment is $244. E. Elin's monthly car payment is $204 wwwJenna bought a new car for $28,000. She paid a 20% down payment and financed the remaining balance for 36 months with an APR of 3.5%. Assuming she makes monthly payments, determine the total interest Jenna pays over the life of the loan. Round your answer to the nearest cent, if necessary.
- Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase time and taking a $20,000, 5-year, 6% per year, compounded monthly loan with 60 monthly payments of $386.66 each. She is examining her loan situation and would like to have some specific information. Help her obtain the following: (a) Verification of the current monthly payment amount. (b) Total amount she will pay over the 5 years. (c) Total interest she will pay over the 5 years and the percentage this represents of the original loan amount of $20,000. (d) After she missed payment #36 at the very end of the third year, according to the loan agreement, the interest rate increased from 6% to 10% per year, compounded monthly. Based on the remaining principal immediately after the late payment, determine the new monthly payment. Verify that this increased amount is necessary to pay off the loan at the increased rate. (e) Penny is now in her fourth year, has paid the increased payment for 12…Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years. a) What is the size of payment made at the end of every month to settle the loan? $ b) What was the amount of interest charged for the entire loan? c) If Kristen pays an additional $50 per month, how many periods will it take to payoff the load? $4 d) If Kristen pays an additional $50 per month, how much interest will be saved? $Nona purchased a new car earlier today for $24,000. She financed the entire amount with a five-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 2 years (i.e., after 24 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $
