A BMW that has a sticker price of $62,450 with factory and dealer rebates of $6,000 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)
Q: You take out a consumer loan at your credit union for new insulated windows for your house. The…
A: Given: Rate=7.5%NPER=71PV(Present value)=8250 -20% ×8250=6600
Q: For the car loan described, give the following information. A car dealer will sell you a used car…
A: Note: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3…
Q: You work for a furniture store. You normally sell a living room set for OMR 4,000 and finance the…
A: Present Value: The present value is the value of the sum received at time 0 or the current period.…
Q: A car dealer advertises the sale of a car model for a cash price of P280,000.00. If purchased on…
A: Present value of an annuity: It is the value of all future payments at the present date at some…
Q: 9. Shirley Stewart is planning to buy a Toyota hybrid for $18,789 with $1,100 down and plans to…
A: The monthly payment amount can be computed with the help of present value of annuity function.
Q: A local used car dealer calculates its “4%” financing as follows. If $3600 is borrowed to be repaid…
A: Given Information: Present Value of loan : $ 3,168 Monthly Payments : $ 100 Number of Period : 36…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You are interested in purchasing a new automobile that costs $35.000. The dealership offers you a…
A: A loan is an agreement where a party receives an amount in return for paying it back along with some…
Q: A pottery factory purchases a continuous belt conveyor kiln for $48,000. A 6.2% APR loan with…
A: given, pv=$48,000 r=6.2%=6.2%12 pmt=$428.13,
Q: Which is a better choice in buying a washing machine worth ₱12,700.00? A. Avail of the instalment…
A: From all options, let's find the interest charged. For option A, n = 18 months Monthly payment (M) =…
Q: Andy wants to buy a car that costs $22,750. The dealership will finance the car for 5 years, at…
A: A loan is an agreement where an amount is forwarded in exchange for a periodic payment which would…
Q: Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license…
A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…
Q: 1. You and the dealer have agreed upon the purchase price for a new automobile. The purchase price…
A: Loan: It is the amount that the lender gives to the borrower & in return charge interest on…
Q: A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must…
A: Effective annual rate: It is the rate which is compounded annually.
Q: You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount…
A: PMT is the periodic payment.
Q: Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a…
A: The formula for computing present value as follows: Present value=FV1+rn
Q: A car can be purchased for 0% down for 60 months (in lieu of rebate). It has a sticker price of…
A: First let's define what is add on interest is Add on interest is a method of calculating the…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…
Q: Find the monthly payment for a $12,750 car loan financed for 30 months at 2.5% interest. Show the…
A: The monthly payments discussed here are a form of annuity wherein an equal payment is made every…
Q: Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a…
A: Following formula will be used to calculate the present value:
Q: Kangaroo Autos is offering free credit on a new $14,000 car. You pay $1,400 down and then $420 a…
A: According to the time value of money, money available earlier is worth more than the same dollar…
Q: Kangaroo Autos is offering free credit on a new $12,500 car. You pay $1,700 down and then $360 a…
A: In this question present value of annuity payments of kangaroo autos has to be find out. Present…
Q: For the car loan described, give the following information. A car dealer will sell you a used car…
A: The annual interest rate that is charged by the lenders or at which the investors earn additional…
Q: (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest…
A: Information Provided: Sticker price = $62,470 Rebate = $6000 Term = 60 months Add-on Interest = 2.5%
Q: An electronics retailer is offering a deferred payment plan. A customer can buy a laptop today for…
A: Monthly payment (P) = $ 145 Number of monthly payments (n) = 12 Rate of return = 12% Monthly…
Q: A local car dealer offers a customer a 3-year car loan of $15,000 using “add-on” interest.The first…
A: Loan is a financial agreement between lender and borrower. Lender lends money to borrower in…
Q: You want to buy a new sports coupe for $75,100, and the finance office at the dealership has quoted…
A: Loan Amount is $75,100 APR is 7.5% Total Number of months is 72 Monthly rate is 7.5%12=0.625% To…
Q: ou have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…
A: The given problem can be solved using PV function in excel. PV function will compute present price…
Q: Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments…
A: SOLUTION
Q: A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: For the car loan described, give the following information. A car dealer will sell you the $30,750…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: You go to a phone dealer to buy a new car for 22,000 pesos financed at 3.4% APR, compounded monthly,…
A: An annuity loan occurs when an annuitant borrows money against the value of his or her annuity…
Q: A car is advertised with a price of $41345. The payment plan to own a car is $416 per month for 3…
A: Given: Car price = $41,345 Payment per month = $416 Period = 3years
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: INTRODUCTION: The term "annual percentage rate" (APR) describes the annual interest that is produced…
Q: Fast Eddie's Used Cars will sell you a 1989 Mazda Miata for OMR5,000 with no money down. You agree…
A: Working of the payment made to buy the used car is shown as follows:
Q: A local car dealer offers a customer a 3-year car loan of $15,000 using “add-on" interest. $15,000…
A: Effective annual interest rate can be defined as that rate which is charged on annual basis after…
Q: CRIA iV, N) Today you purchase a previously owned Tesla Model 3 for $40,000. You take out a 0.25%…
A: Loans are paid by the equal monthly installments and these have payment of loan amount and also…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a…
A: Installment Purchase: Buying a product over a long period of time. The buyer receives immediate…
Q: In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla…
A: Monthly payment: Monthly loan payments are usually divided into equal installments during the…
Q: Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments…
A: Present Value- The value of an investment or amount today is referred to as its present value. It is…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: Given: Particulars Finance rate 0% Periods 60 Cost of car $42,100 Rebate $5,100…
Q: Your firm is considering the purchase of equipment from two suppliers. Supplier A requires payment…
A: To compare the alternatives, present value of each alternative shall be calculated and compared to…
Q: You want to purchase a car with a sticker price of $25,000.The car dealer offers you a $2,000…
A: Loan is an agreement under which the borrower would be asking for some funds to be raised. These…
Q: You wish to buy a $9,700 dining room set. The furniture store offers you a 2-year loan with an APR…
A: The question is based on the concept of Financial Management.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,590 with factory and dealer rebates of $6,000. the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$1043.17 (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ ?Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)? %State whether the 0% APR or the 2.5% add-on rate should be preferred. 0%Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,470 with factory and dealer rebates of $6,000. Hint: See Section 11.2, Example 5 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,440 with factory and dealer rebates of $6,000 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred. 0% APR2.5% add-on rate
- Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,590 with factory and dealer rebates of $6,000. Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %State whether the 0% APR or the 2.5% add-on rate should be preferred.Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,800 with factory and dealer rebates of $5,100. Hint: See Section 11.2, Example 5. (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.An auto dealership is advertising that a new car with a sticker price of $33,408 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $464. Note that 72 payments × $464 per payment = $33,408, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.) Enter your answer as a percentage. If required, round your answer to one decimal digit.
- An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $469. Note that 72 payments × $469 per payment = $33,768, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.)Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,100 with factory and dealer rebates of $5,100. Hint: See Section 11.2, Example 5. (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred. 0% APR2.5% add-on rateAssume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $36,350 with factory and dealer rebates of $4,200 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) %(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.
- Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,750 with factory and dealer rebates of $5,100. Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ ?Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ ?Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)? %Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month for the next 30 months. If the rate is 0.75% a month, calculate the present value of the payments to Kangaroo Autos.To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is[$10,000 (0.1) (35) + $10,000]/35 = $385.71/month. If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?