Let’s pretend that we will buy a brand-new car online. How much is the car? How much is your planned down payment (limit it to 10%-30% of the car’s price)? If you plan to pay it for 5 years (60 months), how much is your monthly payment? What is the car loan interest rate (%)? What are the other fees and how much (if available)? In total, how much will you pay for the car (down payment + all monthly payments+ other fees)?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Let’s pretend that we will buy a brand-new car online.

  1. How much is the car?
  2. How much is your planned down payment (limit it to 10%-30% of the car’s price)?
  3. If you plan to pay it for 5 years (60 months), how much is your monthly payment?
  4. What is the car loan interest rate (%)?
  5. What are the other fees and how much (if available)?
  6. In total, how much will you pay for the car (down payment + all monthly payments+ other fees)?
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