A car dealer will sell you a used car for $6,998 with $798 down and payments of $164.51 per month for 48 months. what is the interest rate (rounded to two decimal places) and the APR (rounded to the nearest tenth of a percent).

A car dealer will sell you a used car for $6,998 with $798 down and payments of $164.51 per month for 48 months. what is the interest rate (rounded to two decimal places) and the APR (rounded to the nearest tenth of a percent).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

See similar textbooks

Related questions

Q: For the car loan described, give the following information. A car dealer will sell you the $30,950…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: What is the amount of interest paid?

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing. It…

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: Assuming you have seen a car displayed in a mall with installment price of 500,000 with no interest.…

A: Installment system allows the buyer of an asset to pay for the asset in regular payments over a…

Q: You carry over a balance of $400 on a recent purchase of a washing machine, you will just pay the…

A: Given Minimum payment = 4% of the balance Balance = $400 APR =15.99%

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: Ben Spendlove just purchased a new stereo system for $975 and will be making payments of $45 per…

A: The amount borrowed from bank is known as loan. The interest rate on loan can either be charged…

Q: For the car loan described, give the following information. A car dealer will sell you the $30,950…

A: In this problem we have to get interest rate from given data.

Q: You finance a $500 car repair completely on credit, you will just pay the minimum payment each month…

A: Given: Finance amount = $500 Minimum payment rate = 4% APR (Annual percentage rate) = 18.99%…

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: An auto dealer agrees to sell a used car for $1,000 down and payments for 3 years at $550 per month.…

A: according to the question given, downpayment = $1000 monthly payment (A) = $550 interest rate (R) =…

Q: You wish to buy a $10,000 dining room set. The furniture store offers you a three-year loan with an…

A: Given information: Present value or principal value is $10,000 Number of years of loan is 3 Interest…

Q: A metallurgist purchases a car for total cost including tax and license of $35,295.66. If the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You just bought a used car for $11,000 with no down payment using dealer financing at 4% APR…

A: Price of the Car is $11,000 APR is 4% compounded monthly Monthly payment is $300 To Find:- Time…

Q: You want to buy a new sports coupe for $75,300, and the finance office at the dealership has quoted…

A: Loan amount (PV) = $ 75,300 Interest rate = 7.7% Monthly interest rate (r) = 7.7%/12 =…

Q: A car dealer advertises the sale of a car model for a cash price of P 280,000. If purchased on…

A: Formula to Calculate Monthly Payments Monthly Payments = (P X R/12) X [(1 +R/12)^N)/ [(1+R/12)^N -1]…

Q: For the car loan described, give the following information. A car dealer will sell you a used car…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for finite…

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 buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: Suppose that you decide to buy a car for $31,635, including taxes and license fees. You saved $8000…

A: given, down payment = $8000 therefore loan amount = $31635 - $8000 = $23635 P=23635 R=7.59% N=12 T=3…

Q: A car is to be purchased in monthly payments of ₱ 17,000.00 for 4 years starting at the end of 4…

A: Monthly payment (M) = P 17000 n = 4 years = 48 payments r = 12% per annum = 1% per month First…

Q: You bought a car and will pay back $378 per month for 48 months. If the rate is 3.46%, how much did…

A: The amount borrowed is calculated using the Present Value of Annuity formula.

Q: "A furniture store has an ad for a sofa set priced at $1600. The customer is offered the choice of…

A: A loan is an agreement between two parties where one party forwards an amount for it to be paid back…

Q: To buy a car, you borrow $28,000 with a term of five years at an APR of 7%. What is your monthly…

A: Loan amount (PV) = $ 28,000 APR = 7% Monthly interest rate (r) = 7%/12 = 0.583333333333333% Period =…

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: You want to buy a new sports coupe for $74,100, and the finance office at the dealership has quoted…

Q: A car is advertised with a price of $42291. The payment plan to own a car is $468 per month for 4…

A: Interest amount = Total payment - Principal amount

Q: For the car loan described, give the following information. A car dealer will sell you the $30,750…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: You are purchasing a new car for $27,600. The dealership offers you three options: • 0% financing: 0…

A: Car Price = $27,600 Time Period(Months) = 48 Interest Rate = 0% Down Payment = $0

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: What is the simple interest rate ?

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: A newspaper advertisement offers a $9000 car for nothing down and 36 monthly payments of $332.50…

A: Answer

Q: Manjean is making car payments of $662 per month for the next 3 years. Manjean knows that the car…

A: Formula Car price = P*[1-(1+I)-N]/I Where P - Monthly payment i.e. $662 I - Monthly interest rate…

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: 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: 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: What is your monthly payment if you choose 0% financing for 48 months? $ .…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: You want to buy a new sports coupe for $74,700 , and the finance office at the dealership has quoted…

A: The monthly payments is calculated by using fallowing formula Present value P = Present value…

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: Sultan’s Used Cars just sold you a clunker (you need it to get to class on time). You financed the…

A: Given:

Q: For the car loan described, give the following information. A newspaper advertisement offers a…

A: Whenever an individual is in need for extra funds to finance his or her purchase in case of less…

Q: You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The…

A: The question is related to Amortization Schedule for 6 months. The details are given.

Q: An auto dealer has designed a marketing gimmick. They are asking their customers tinky only $109 at…

A: The monthly payment is the lowest amount which an investor needed to save to get the required amount…

Q: A new engineer buys a car with 0% down financing from the dealer. The cost with all taxes,…

A: Information Provided: Total costs = $15,732 Number of payments = 48 Payment amount = $398

Q: You want to buy a new sports coupe for $78,500, and the finance office at the dealership has quoted…

A: Loan amount = $78,500 Annual percentage rate (APR) = 6% Effective annual rate (EAR) is the…

Q: A bank teller negotiated a purchase price of $22,350 for a car. In addition to the purchase price,…

A: We first need to figure out the total cost of the car and then the amount of loan. We will then use…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

A car dealer will sell you a used car for $6,998 with $798 down and payments of $164.51 per month for 48 months.

what is the interest rate (rounded to two decimal places) and the APR (rounded to the nearest tenth of a percent).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
For the car loan described, give the following information. A car dealer will sell you a used car for $6,598 with $798 down and payments of $167.51 per month for 48 months. amount to be paid$ ? amount of interest$ ?Interest rate (Round your answer to two decimal places.) % ?APR (rounded to the nearest tenth of a percent) % ?
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 ?
You can buy a car for $6,998 with $798 down and payments of $164.51 each month for 48 months. what's the amount of interest, interest rate (rounded to two decimal places) and the APR (rounded to the nearest 10th of a percent)
For the car loan described, give the following information. A car dealer will sell you a used car for $6,598 with $798 down and payments of $161.51 per month for 48 months. (a) amount to be paid$ (b) amount of interest$ (c) interest rate (Round your answer to two decimal places.) %(d) APR (rounded to the nearest tenth of a percent) %
For the car loan described, give the following information. A car dealer will sell you the $30,150 car of your dreams for $6,000 down and payments of $663.06 per month for 60 months. (a) amount to be paid$ (b) amount of interest$ (c) interest rate (Round your answer to two decimal places.) %(d) APR (rounded to the nearest tenth of a percent) %
For the car loan described, give the following information. A car dealer will sell you the $30,950 car of your dreams for $6,000 down and payments of $667.06 per month for 60 months. (c) interest rate (Round your answer to two decimal places.) (d) APR (rounded to the nearest tenth of a percent)
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-halfyears. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
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.
A car is advertised with a price of $ 13,500 . The payment plan to own a car is $425.60 per month for 3 years. What is the amount of interest paid? Round to the nearest cent (two decimal places)
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.)
A new engineer buys a car with 0% down financing from the dealer. The cost with all taxes, registration, and license fees is $15,732. If each of the 48 monthly payments is $398, what is the monthly interest rate? What is the effective annual interest rate?