Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000, which she uses as a down payment. She finances the balance at 4.5% APR over 48 months. Before making her 12th payment, she decides to pay off the loan. Answer parts a) through d) below. Number of 4.0% Payments (Finar 30 525 36 6.29 48 8.38 a) Use the given table to determine the total interest Nina would pay if all 48 payments were made. Nina would pay S (Round to the nearest cent as needed.) in interest b) What were Nina's monthly payments? Nina's monthly payments were S (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save S (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is S (Round to the nearest cent as needed.)
Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000, which she uses as a down payment. She finances the balance at 4.5% APR over 48 months. Before making her 12th payment, she decides to pay off the loan. Answer parts a) through d) below. Number of 4.0% Payments (Finar 30 525 36 6.29 48 8.38 a) Use the given table to determine the total interest Nina would pay if all 48 payments were made. Nina would pay S (Round to the nearest cent as needed.) in interest b) What were Nina's monthly payments? Nina's monthly payments were S (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save S (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is S (Round to the nearest cent as needed.)
Chapter6: Business Expenses
Section: Chapter Questions
Problem 69P
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Transcribed Image Text:Nina buys a new sport utility vehicle for $35,000. She
trades in her old truck and receives $10,000, which she
uses as a down payment. She finances the balance at
4.5% APR over 48 months. Before making her 12th
Number
of
4.0%
Payments
(Financ
30
5.25
payment, she decides to pay off the loan. Answer parts
a) through d) below.
36
6.29
48
8.38
a) Use the given table to determine the total interest Nina would pay if all 48 payments were made.
Nina would pay S
in interest
(Round to the nearest cent as needed.)
b) What were Nina's monthly payments?
Nina's monthly payments were S
(Round to the nearest cent as needed)
c) How much interest will Nina save by paying off the loan early?
Nina will save S.
(Round to the nearest cent as needed.)
d) What is the total amount due to pay off the loan?
The payoff amount is S-
(Round to the nearest cent as needed.)
Transcribed Image Text:Annual Percentage Rate
5.0%
Number
5.5%
ne
of
4.0%
4.5%
Payments
(Finance charge per $100 of amount financed)
6.59
7.90
7.26
5.25
6.29
30
5.92
rts
7.09
8.71
36
48
8.38
9.46
10.54
11.63
Nina would pay if all 48 payments were made.
che loan early?
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