mith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim that if he can come up with a down payment of $4,800, the dealer will finance the balance of the price at a 8% annual rate over 3 years (36 months). Assuming that tim accepts the dealer's offer, what will his monthly ( end of month) payment amount be? What will Tim's monthly payment be if the dealer were willing ot finance the balance of the car price at an annual rate of 3.1%?
mith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim that if he can come up with a down payment of $4,800, the dealer will finance the balance of the price at a 8% annual rate over 3 years (36 months). Assuming that tim accepts the dealer's offer, what will his monthly ( end of month) payment amount be? What will Tim's monthly payment be if the dealer were willing ot finance the balance of the car price at an annual rate of 3.1%?
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
Problem 1PS
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Tim smith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim that if he can come up with a down payment of $4,800, the dealer will finance the balance of the price at a 8% annual rate over 3 years (36 months).
Assuming that tim accepts the dealer's offer, what will his monthly ( end of month) payment amount be?
What will Tim's monthly payment be if the dealer were willing ot finance the balance of the car price at an annual rate of 3.1%?
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