Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,100 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 $4,100? Yes, under these conditions, Chuck will meet his goal.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.) try to negotiate a lower interest ratetry to negotiate a higher interest ratemake a lower down paymenttry to bargain for a higher sale pricemake a higher down paymenttry to bargain for a lower sale price (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 $4,800, 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.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

See similar textbooks

Related questions

Concept explainers

Question

100%

Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,100 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 $4,100?

Yes, under these conditions, Chuck will meet his goal.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.)

try to negotiate a lower interest ratetry to negotiate a higher interest ratemake a lower down paymenttry to bargain for a higher sale pricemake a higher down paymenttry to bargain for a lower sale price

(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 $4,800, 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.No, the monthly payment is too high.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 6 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