Sam can afford to spend $500 per month on a car. He figures he needs half of it for gas, parking, and insurance. He has been to the bank, and they will loan him 100% of the car’s purchase price. (Note: If he had a down payment saved, then he could borrow at a lower rate.) (a) If his loan is at a nominal 12% annual rate over 36 months, what is the most expensive car he can purchase? (b) The car he likes costs $14,000 and the dealer will finance it over 60 months at 12%. Can he afford it? If not, for how many months will he need to save his $500 per month? (c) What is the highest interest rate he can pay over 60 months and stay within his budget if he buys the $14,000 car now?

Bha

Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance is available and the terms are that the loan lasts for 6 years, and the annual interest rate is 8%. What is the maximum price for a car that Ryan's budget can afford?Round your answer to the nearest hundred dollars.

Dennis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at  7 3 4 %  and requires a down payment of $1,000. The second is through his bank; it is a four-year simple interest amortized loan at  7 3 4 %  and requires a down payment of $1,000. (Round your answers to the nearest cent.) (b) Find the total interest paid for each loan. dealer     $  bank     $

After careful comparison shopping, Noah Griffin decides to buy a new Toyota Camry. With some options added, the car has a price of $23,610 - including plates and taxes. Because he can't afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down $7,610. Noah plans to finance the rest with a $16,000, 60-month loan at a simple interest rate of 5 percent.   What will his monthly payments be? Round the answer to the nearest cent. $   per month How much total interest will Noah pay in the first year of the loan? Round the answer to the nearest cent. (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.) $   How much interest will Noah pay over the full (60-month) life of the loan? Round the answer to the nearest cent. $   What is the APR on this loan? Round the answer to 2 decimal places. %

Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of the car from her bank at 6 percent interest rate. The loan requires monthly payments for a period of five years. If the first payment is due in one month after purchasing the car, what will be the amount of Wilma’s monthly payment on the loan?

You determine you can afford $300 per month for a car. What is the maximum amount you can afford to pay for a car if the interest rate is 9% and you want to repay the loan in 5 years?

4) Brenda is buying a living room set for her home. At Furniture, Inc., she picks out a set for a total cash price of $1,899 The salesperson tells her if she qualifies for an installment loan, she may pay 10% down and finance the balance with payments of $88.35 per month for 24 months?

Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment occurring one month from today. If the annualized interest rate for car loans is 8%, what is the maximum amount he borrow to purchase a car? Enter a positive number as your answer and round to the nearest dollar.

6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?