You have bought a car. The car dealer offers two payment plans: (A) Make 48 monthly payments of $130 each, or (B) Make 36 payments of $165 each. If the time value of money is 12% per year, which plan is cheaper for you?

Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $35,000 for the car today. 2. Pay $4,000 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Present Value Option 1 Option 2 1-b. Which option gives him the lower cost? Option 1 Option 2

You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4% annual interest compounded quarterly. You plan on adding to that account with quarterly deposits of $500 each over the next two years.  Then you will take the balance of that account to use as a down payment on your new car.  You expect the car you want will cost $32,000 and that you will be able to get a loan from the dealer at a 12% annual rate for a five-year term.   What will your monthly payments be on the car 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?

Solve the problem with complete solution. 9. You plan to buy a house and lot through home loan from a bank. The selling price is 1,800,000 and the bank requires a down payment of 20% of the selling price. How much is the down payment?

You are shopping for a car and read the following advertisement in the newspaper: "Own a new Spitfire! No money down. Four annual payments of just $18,000." You have shopped around and know that you can buy a Spitfire for cash for $64,800. What is the interest rate the dealer is advertising (what is the rate that equates the PV of the payments to today's cash price of the car)? Assume that you must make the annual payments at the end of each year. C The rate that equates the PV of the payments to today's cash price of the car is %. (Enter your response as a percent rounded to two decimal places.)

You determine that you can afford $356for a car payment but only want to finance it for 4 years. If current auto rate are 8.11% and TTD will cost $1200. How much can you afford to pay for the car itself?

You have saved 18,000$ for a down payment on a house. Your  bank requires a minimum down payment of 11%. What is the maximum price you can offer for a home in order to have enough money for the down payment? Round answer to two decimal places.

Suppose you want to buy a car right now. Your credit is pretty good so you can get an 4% I interest rate on the loan for the car. You can afford to make payments of $300 each month. You would like to pay this loan back over 4 years.    How much car can you afford?

you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per month. The bank offers three choices for the loan: a four-year loan with an APR of 7%, a five- year loan with an APR of 7.5%, and a six-year loan with an APR of 8%. Which option best meets your needs, assuming you want to pay the least amount of interest?