Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.25% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $3,600? Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) O make a higher down payment O make a lower down payment try to negotiate a lower interest rate try to bargain for a lower sale price O try to bargain for a higher sale price O try to negotiate a higher interest rate (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.85% loan if Chuck can pay 20% down. What will Chuck's new monthly payment (in $) be with these conditions? (Round your answer to the nearest cent.) $ With these conditions, will Chuck be able to pay off the loan and meet his goals? O Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high. (d) Attempting to reduce his monthly payment further, Chuck continues to negotiate with the seller. If the seller agrees to reduce the listed price by $4,600, finance the deal with a 6.85% loan, and if Chuck pays the 20% down, what will Chuck's monthly payment be (in $)? (Round your answer to the nearest cent.) $ With these conditions, will Chuck be able to pay off the loan and meet his goal? Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high.
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.25% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $3,600? Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) O make a higher down payment O make a lower down payment try to negotiate a lower interest rate try to bargain for a lower sale price O try to bargain for a higher sale price O try to negotiate a higher interest rate (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.85% loan if Chuck can pay 20% down. What will Chuck's new monthly payment (in $) be with these conditions? (Round your answer to the nearest cent.) $ With these conditions, will Chuck be able to pay off the loan and meet his goals? O Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high. (d) Attempting to reduce his monthly payment further, Chuck continues to negotiate with the seller. If the seller agrees to reduce the listed price by $4,600, finance the deal with a 6.85% loan, and if Chuck pays the 20% down, what will Chuck's monthly payment be (in $)? (Round your answer to the nearest cent.) $ With these conditions, will Chuck be able to pay off the loan and meet his goal? Yes, under these conditions, Chuck will meet his goal. O No, the monthly payment is too high.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 27M
Related questions
Question
100%
Transcribed Image Text:Chuck Wells is planning to buy a Winnebago motor home. The listed price is
$155,000. Chuck can get a secured add-on interest loan from his bank at
7.25% for as long as 60 months if he pays 15% down. Chuck's goal is to
keep his payments below $3,600 per month and amortize the loan in 42
months.
(a) Find Chuck's monthly payment (in $) with these conditions. (Round your
answer to the nearest cent.)
$
Can he pay off the loan and keep his payments under $3,600?
O Yes, under these conditions, Chuck will meet his goal.
O No, the monthly payment is too high.
(b) What are Chuck's options to get his payments closer to his goal? (Select
all that apply.)
O make a higher down payment
O make a lower down payment
try to negotiate a lower interest rate
try to bargain for a lower sale price
O try to bargain for a higher sale price
O try to negotiate a higher interest rate
(c) Chuck spoke with his bank's loan officer, who has agreed to finance the
deal with a 6.85% loan if Chuck can pay 20% down. What will Chuck's
new monthly payment (in $) be with these conditions? (Round your
answer to the nearest cent.)
$
With these conditions, will Chuck be able to pay off the loan and meet his
goals?
Yes, under these conditions, Chuck will meet his goal.
No, the monthly payment is too high.
(d) Attempting to reduce his monthly payment further, Chuck continues to
negotiate with the seller. If the seller agrees to reduce the listed price by
$4,600, finance the deal with a 6.85% loan, and if Chuck pays the 20%
down, what will Chuck's monthly payment be (in $)? (Round your answer
to the nearest cent.)
$
With these conditions, will Chuck be able to pay off the loan and meet his
goal?
O Yes, under these conditions, Chuck will meet his goal.
O No, the monthly payment is too high.
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!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 2 images
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.Recommended textbooks for you
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,