Suppose you are in the market for a new car worth $18,000. You are offered a deal fo make a S1,800 down payment now and to pay the balance in equal end-of-month payments of $421.85 over a 48-month period. Consider the following situations: a. Instead of going through the dealer's financing, you want to make a down payment of $1,800 and take out an auto loan from a bank at 11.75% compounded monthly. What would be your monthly payment to pay off the

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You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then you will finance the rest with a loan. Your bank will extend you a car loan where the APR is 4.32% and you will make monthly payments over five years. What is the monthly payment on the vehicle? O $593.33 O $660.78 O $512.79 O $825.98

A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of $108.6. The customer indicates that a 8.6 percent return is not very attractive. The broker responds by suggesting the customer borrow $80 for one year at 6.6 percent interest to help pay for the investment. a. What is the customer's expected return if she borrows the money? (Round your answer to 1 decimal place.) Customer's expected return %

Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% PA [¹-(1+] Use PMT= -nt7 to complete parts (a) through (c) below. a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)

Suppose that you decide to buy a car for $63,000, including taxes and license fees. You saved $12,000 for a 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 7.72%. 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 PMT= The difference in monthly payments between the two offers is $ (Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. A. Incentive A is the better deal. B. Incentive B is the better deal. PA n nt 1 - ( 1₁ + -/-) - ² n

Choose the best answer to the following question. Explain your reasoning with one or more complete sentences. What does a loan of $400,000 that carries a 4-point origination fee require as an advance payment? Choose the correct answer below. A. An advance payment of $1,600 is required. Each point is 1% of the loan amount, so the advance payment amount is 4% of $400,000. B. An advance payment of $16,000 is required. Each point is 1% of the loan amount, so the advance payment amount is 4% of $400,000. OC. An advance payment of $8,000 is required. Each point is 1% of the loan amount, so the advance payment amount is 4% of $400,000. OD. An advance payment of $16,000 is required. Each point is 10% of the loan amount, so the advance payment amount is 40% of $400,000. E. An advance payment of $8,000 is required. Each point is 10% of the loan amount, so the advance payment amount is 40% of $400,000. OF. An advance payment of $1,600 is required. Each point is worth between 50 and 100 points…

A car dealer will sell you a used car for $6798 with $798 down and payments of $162.51 per month for 47 month for 48 months. What is the simple interest rate ?

A car dealership is offering to roll over the amount owed on your car into a new loan so you can purchase a new car. Suppose you owe $5,406.77 on your current car and have agreed to a new car whose total cost, including tax and license, is $29,905.87. You are getting a 5-year loan at an annual interest rate of 4.75%. What are your new monthly payments (in dollars)? (Round your answer to the nearest cent.)

Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 5.2% Use PMT= nt] to complete parts (a) through (c) below. The total interest for Loan A is $1501.35. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $284.42 (Do not round until the final answer. Then round to the nearest cent as needed.)