You are looking to buy a car and can afford to pay $210 per month. If the interest rate on a car loan is 0.77% per month for a 60-month loan, what is the most expensive car you can afford to buy? The amount that you can afford is (Round to the nearest dollar.) CIT

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Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

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A: The time value of money refers to the concept that represents the money present today is more…

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A: PMT is $250,r is 4.5% or 0.045,n is 5×12 months (5 years converted to months),DP is $1000.

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A: Monthly payment is calculated by pmt formula in excel.

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A: Cost of car=$11999 Down payment =5500 monthly payment =250 interest rate =7%

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A: Price of car = $21,000 Down Payment = $3,500 Time Period = 6 Years Interest rate = 3.6%

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A: Monthly payment (C) = $300Monthly interest rate (r) = 0.00333333333333333 (i.e. 0.04 / 12)Number of…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.