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After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $19,500 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $9,500. She plans to finance the rest with a $10,000, 60-month loan at a simple interest rate of 11.5 percent.   What will her monthly payments be? Round the answer to the nearest cent. $ per month How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent. $ How much interest will Isabella pay over the full (60-month) life of the loan? Round the answer to the nearest cent. $ What is the APR on this loan? Round the answer to 1 decimal place.  %

After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $19,500 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $9,500. She plans to finance the rest with a $10,000, 60-month loan at a simple interest rate of 11.5 percent.   What will her monthly payments be? Round the answer to the nearest cent. $ per month How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent. $ How much interest will Isabella pay over the full (60-month) life of the loan? Round the answer to the nearest cent. $ What is the APR on this loan? Round the answer to 1 decimal place.  %

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 8FPE
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Chapter 7
Financial Planning Exercise 8
Calculating payments, interest, and APR on auto loan

After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $19,500 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $9,500. She plans to finance the rest with a $10,000, 60-month loan at a simple interest rate of 11.5 percent.

 

  1. What will her monthly payments be? Round the answer to the nearest cent.
    $ per month

  2. How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent.

    $

  3. How much interest will Isabella pay over the full (60-month) life of the loan? Round the answer to the nearest cent.
    $

  4. What is the APR on this loan? Round the answer to 1 decimal place.
     %

 
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