In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla LE sedan for $18,299 (not including sales tax, registration, license plates, title, and $125 “dealer documentation fee”) at 0% annual interest over 36 months. A) But opt instead for 1.9% over 60 months. What would be the monthly payment?
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In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla LE sedan for $18,299 (not including sales tax, registration, license plates, title, and $125 “dealer documentation fee”) at 0% annual interest over 36 months.
A) But opt instead for 1.9% over 60 months. What would be the monthly payment?
17. But opt instead for a further $500 manufacturer rebate and pay 2.9% interest over 60 months. What would be the monthly payment?(after computing the monthly payment, create an amortization table for the first three payments in problem 17)
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- An auto dealership is advertising that a new car with a sticker price of $33,408 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $464. Note that 72 payments × $464 per payment = $33,408, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.) Enter your answer as a percentage. If required, round your answer to one decimal digit.An auto dealership is advertising that a new car with a sticker price of $34,128 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $474. Note that 72 payments x $474 per payment $34,128, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments $25,995.) Enter your answer as a percentage. If required, round your answer to one decimal digit. 9.42% Hide Feedback Incorrect15) In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla LE sedan for $18,299 (not including sales tax, registration, license plates, title, and $125 “dealer documentation fee”) at 0% annual interest over 36 months. What would be the monthly payment? Answer=$508.31 16. Repeat Exercise 15, but opt instead for 1.9% over 60 months. What would be the monthly payment? 17. Repeat Excercise 15, but opt instead for a further $500 manufacturer rebate and pay 2.9% interest over 60 moths. What would be the monthly payment?(after computing the monthly payment, create an amortization table for the first three payments in problem 17)
- An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $469. Note that 72 payments × $469 per payment = $33,768, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.)You want to purchase a car with a sticker price of $25,000.The car dealer offers you a $2,000 discount and a 48-month,8.5% APR compounded monthly, or no discount with a4.0% APR on a 48-month loan. Which offer is better?11.8 Considering an inflation of 4.0%. How does inflation affect the results of the previous problem?You are interested in purchasing a new automobile that costs $35,000. The dealership offers you a special financing rate of 6% in APR for 48 months. The repayment needs to be made on the monthly frequency. Assume that you do not make any down payment on the auto and take the dealer's financing deal. What is your monthly car payment? O $1533.4 O $8,859.65 O $821.98 O $729.2
- In August 2008, a car manufacturing company was offering the choice of a 3.3% loan for 72 months, or $3000 cash back on the purchase of a $25,377 car. (a) If someone took the 3.3% loan offer, how much will the monthly payment be? (b) If someone took the $3000 cash-back offer and can borrow money from their local credit union at 7.6% interest compounded monthly for six years, how much will the monthly payment be? (c) Which of the two offers is more favorable?You sell $5 million dollars' worth of delivery trucks to Walmart on account and offer them a 2% discount if they pay within 15 days, with the invoice due after 45 days (2/15, n/45). Unfortunately, Walmart returns all of the trucks after one week because they discover that the model you sold them is not approved for use in California. Which of the following is part of the correct journal entry to make at the time that Walmart returns the trucks? DEBIT to Sales Returns of $5 million CREDIT to Sales Discount of $100,000 CREDIT to Accounts Receivable of $4.9 million CREDIT to Sales Revenue of $5 millionAssume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,590 with factory and dealer rebates of $6,000. the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$1043.17 (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ ?Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)? %State whether the 0% APR or the 2.5% add-on rate should be preferred. 0%
- Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,800 with factory and dealer rebates of $5,100. Hint: See Section 11.2, Example 5. (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,450 with factory and dealer rebates of $6,000 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.) $ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) $ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) % (d) State whether the 0% APR or the 2.5% add-on rate should be preferred. O 0% APR 2.5% add-on rate Need Help? Read It Deuet te Leat OeaneneeAssume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,100 with factory and dealer rebates of $5,100. Hint: See Section 11.2, Example 5. (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred. 0% APR2.5% add-on rate