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

Monthly Payment = $449Period = 48 MonthsPurchase price of the Car = $27,600Interest Rate = 1.5%…

Answered: Use the Buying a Car information above…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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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

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