Example A brand new, fully loaded Tesla Model S, costs $165,000. They offer financing for 8 years at 2.5%/a, compounded monthly. If you make a $10,000 down payment, what would your monthly payments be? How much does the car actually cost you?
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please answer the question shown in the image and show all steps.
![Example
A brand new, fully loaded Tesla Model S,
costs $165,000. They offer financing for
8 years at 2.5%/a, compounded monthly.
If you make a $10,000 down payment,
what would your monthly payments be?
How much does the car actually cost you?
PV = R[1- (1+i)"]
i](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd197b18e-cfcf-4775-9bf7-63a8bbbbe073%2F6271ed38-accd-4777-acce-d9ded838822f%2Ffa141nj_processed.jpeg&w=3840&q=75)
Step by step
Solved in 2 steps
- A Chevrolet Sonic Hatchback costs $14,640.00. With a 9% down payment, you can have an amortized loan for 8 years at a rate of 4.5%. a) What will the monthly payment be? b)How much will the car cost, in total c)How much money will be paid in interest?You have just purchased a new automobile costing $24000. the trade-in you have is valued at $6000. the purchase will be financed with a 3% loan which will be repaid over 5 years with monthly payments. determine a.) monthly payment b.) the total interest you will pay the loan over the 5 year period, and c.) the loan balance after the 48th payment. Ignore parts a and b, I just want the formula for part c.)A new car will cost $24,000 to buy and $5500 annually to operate. If it is sold for $9300 after 6 years, what is the EUAC? Assume that the owner’s interest rate is 3% for the time value of money.
- A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000? __13. How many artificial payments is given? A. 3 B. 4 C. 7 D.8For item (13) A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000? _____13. How many artificial payments is given?The VEEtile company aims to have enough money to invest into a new grader equipment in 4 years. If the equipment will cost $250,000, how much should the company allocate now if the account earns a. 10% simple interest? b. 10% compounded semi-annually?
- Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Sosa to make 10 equal annual payments of $16,274.53, with the first payment due one year after the purchase. Instructions(a) How much total interest will Sosa pay on this payment plan?(b) Sosa could borrow $100,000 from its bank to finance the purchase at an annual rate of 9%. Should Sosa borrow from the bank or use the manufacturer’s payment plan to pay for the equipmentA new delivery van costs $20,000 and can be financed for 60 months with a $4,000 down payment. I.M.’s bank will finance the van at 5.5 percent compounded monthly, and you calculated his weighted average cost of capital at 8 percent. You found that a 5-year-old van of this model sells for $5,000. What is the monthly payment for the delivery van?You have saved RM 4,000 for a down payment on a new car. The largest monthly payment you can afford is RM 350. The loan would have a 12 percent Annual Percentage Rate based on end-of-month payments. What is the most expensive car you could afford if you finance it for 48 months and 60 months?
- I want to buy a Polaris to ride. The Polaris costs $14,300. How much do I need to put into an account now,if it pays 3.5% compounded quarterly and I want to buy the Polaris in 3 years?A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000, with annual maintenance expenses of $10,000. The truck will be sold at the end of 4 years for $20,000. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.You have just purchased a new automobile costing $24000. the trade-in you have is valued at $6000. the purchase will be financed with a 3% loan which will be repaid over 5 years with monthly payments. determine a.) monthly payment b.) the total interest you will pay the loan over the 5 year period, and c.) the loan balance after the 48th payment. Ignore parts b and c