Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The dealer is offering you a choice between two incentives. Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.03%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PA [-] PMT= The difference in monthly payments between the two offers is (Round to the nearest cent as needed.)

Problem: Yuseff was able to sell a car whose suggested retail price is $1,2000.000. The vehicle will be financed through a bank. The required down payment was $120,000.00 and the monthly amortization for 6 years will be 22,000.00. The car dealer gave 4% commission rate. Questions: 1. What percent of retail price is the down payment? 2. How much was the gross balance or the amount to be financed by the bank?

Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The​ new-car option: The new car costs ​$26,000 and can be financed with a four​-year loan at 7.75​%. The​ used-car option: A​ three-year old model of the same car costs ​$16,000 and can be financed with a four​-year loan at 5.28​%. What is the difference in monthly payments between financing the new car and financing the used​ car?  ​(Round to the nearest cent as​ needed.)

After deciding to acquire a new car, you realize you can either lease the car or purchase it with a two-year loan. The car you want costs $34,000. The dealer has a leasing arrangement where you pay $97 today and $497 per month for the next two years. If you purchase the car, you will pay it off in monthly payments over the next two years at an APR of 6 percent. You believe that you will be able to sell the car for $22,000 in two years.   What is the present value of purchasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   Present value of lease $   What is the present value of leasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   Present value of purchase $   What break-even resale price in two years would make you indifferent between buying and leasing? (Do not round intermediate calculations and round your answer to 2…

You have been given a choice of paying $20,000 for a new GM car with a $3,000 cash rebate (net cost of $17,000 which you finance separately), or zero percent financing for 48 months with no cash rebate. What is the implicit rate of interest in this deal?

Suppose you would like to purchase a new mustang GT. The sticker price of the mustang you want is $40000. The dealer is able to give you an APR of 4% for 5 years. How much will your monthly payments be?How much will you have paid in interest once the loan is paid off?

You went to the car dealer to lease a car.  The car is valued at $30,000 and you can drive away without putting any money down.  The dealer offers you a 5 year lease with a $5,000 residual payment at the end if you want to buy the car.  Assuming monthly payments of $508.32, what is the implied APR?   Your answer should be close to a round number.  Use a % symbol and round to the nearest 1 decimal point.....3.0% would be the form of a correct answer.

You are looking to buy a car. You can afford $600 in monthly payments for five years. In addition to the loan, you can make a $700 down payment. If interest rates are 9.25 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)

Suppose that a car that you want costs $9000.  You make a down payment of $1000 and finance the rest for 4 years at 1.9% interest, compounded monthly.  If you make monthly payments for 4 years, what is the total amount of interest that you'll end up paying?  Round your answer to two decimal places if rounding is necessary.  The $ sign is already written next to the answer box, so do not type a $ sign in your answer.