f4 Use the Buying a Car information above to answer thisquestion.The rebate offer is $3500, and you can obtain a car loan atyour local bank for the balance at 2.38% compoundedmonthly for 48 months. If you choose the rebate, what isyour monthly payment?Round to the nearest dollar. Buying a CarYou are purchasing a new car for $27,600. The dealershipoffers you three options:• 0% financing: 0 down and 0% financing for 48 months.• Rebate: 0 down. If you choose the rebate, you willneed to secure a loan for the balance at your local bank.• Down payment: Make a down payment of 5% or moreand get financing at 1.5% compounded monthly for 48months.

Calculation of the monthly payment if the rebate is chosen and secure a loan for the balance at the…

Use the Buying a Car information above to answer this question. The rebate offer is $3500, and you can obtain a car loan at your local bank for the balance at 2.38% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $ Round to the nearest dollar. LA

Use the Buying a Car information above to answer this question. The rebate offer is $3500, and you can obtain a car loan at your local bank for the balance at 2.38% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $ Round to the nearest dollar. LA

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

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 3FPE: Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance...

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Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance part of it through an installment loan. The car you’re looking for has a sticker price of $18,000. Custom Vehicles has offered to sell it to you for $3,000 down and finance the balance with a loan that will require 48 monthly payments of $333.67. However, a competing dealership will sell you the exact same vehicle for $3,500 down, plus a 60-month loan for the balance, with monthly payments of $265.02. Which of these two financing packages is the better deal?
Use the screenshot attached below to answer the questions Thanks! 1. What is your monthly payment if you choose 0% financing for 48 months? Round to the nearest dollar. 2. The rebate offer is $2600, and you can obtain a car loan at your local bank for the balance at 2.99% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? Round to the nearest dollar. 3.You want to make monthly payments of $413, but you don't want a car loan over your head for more than 48 months, so you decide to go with the down payment option. How much of a down payment do you need to make? Round to the nearest dollar. 4.Suppose you make a down payment of 17% of $27,600 and finance the rest at 1.5% compounded monthly for 48 months. How much interest do you pay over the life of the loan? Round to the nearest dollar.
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months: The rebate offer is $4400, and you can obtain a car loan at your local bank for the balance at 2.27% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $________. Round to the nearest dollar. What is your monthly payment if you choose 0% financing for 48 months? $ _________ . Round to the nearest dollar.
You are in the process of purchasing a new car that will cost you $25,000. The dealership is offering you either a $1,000 rebate (applied toward the purchase price) or 3.9% (APR) financing for 60 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 7.5% (APR) for 60 months. 1) What is the monthly payment amount if you forgo the rebate and finance through the dealership at the lower 3.9% APR? 2) What is the monthly payment amount if you take the $1,000 rebate from the dealership and finance through your credit union? Should you take the rebate and finance through your credit union?
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months. The rebate offer is $1900, and you can obtain a car loan at your local bank for the balance at 2.03% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $ _______ . Round to the nearest dollar.
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months: Use this information for the questions below. Use the Buying a Car information above to answer this question. You want to make monthly payments of $449, but you don't want a car loan over your head for more than 48 months, so you decide to go with the down payment option. How much of a down payment do you need to make? $_____ . Round to the nearest dollar
You can afford to pay $560 each month for a new car. The dealership offers you a 5-year loan at 6.4% interest, compounded monthly. Which of the following formulas would be used to compute the amount of money you can afford to borrow in order to purchase a new car?
For the car loan described, give the following information. A car dealer will sell you a used car for $6,598 with $798 down and payments of $167.51 per month for 48 months. amount to be paid$ ? amount of interest$ ?Interest rate (Round your answer to two decimal places.) % ?APR (rounded to the nearest tenth of a percent) % ?
You want to buy a car worth ₱808,000 at Hyundai Branch through EastWest Bank’s 5-year car loan program. EastWest Bank requires you to pay the 20 percent down payment at Hyundai Branch; the remaining balance shall be your amount loaned from EastWest Bank. If the bank uses an annual interest rate of 0.00132%, compounded monthly, determine the following: a.How much money will the bank finance? b.What is the monthly interest rate of your loan? c.How much money will be bank acquired from you in the 5-year car loan? d.How much is your monthly payment? e.How much money will you be spending on buying the ₱808,000 car?
You are purchasing a new car for $27,600. The dealership offers you three options: 0% financing: 0 down and 0% financing for 48 months. Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank. Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months. What is your monthly payment if you choose 0% financing for 48 months? $ . Round to the nearest dollar. The rebate offer is $4800, and you can obtain a car loan at your local bank for the balance at 5.16% compounded monthly for 48 months. If you choose the rebate, what is your monthly payment? $ . Round to the nearest dollar. You want to make monthly payments of $403, but you don't want a car loan over your head for more than 48 months, so you decide to go with the down payment option. How much of a down payment do you need to make? $ . Round to the nearest…