You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $   What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $

Q: You decide to buy a car for $15,000.00 and decide to make payments of $1,100 each month. If the loan…

A: Using excel NPER function

Q: You need to have 59,173 dollars to buy a new car 5 years from now. How much do you need to save at…

A: An annuity is the sum total of all the periodic payments or investments made over the period of time…

Q: Kangaroo Autos is offering free credit on a new $12,400 car. You pay $700 down and then $390 a month…

A: Calculation of Present Value of Payments:

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A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount =26100 Financial charges =9360 Monthly payment =985 Total =36 months  Monthly financial…

Q: 4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has…

A:

Q: We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost…

A: Annuity means a series of finite number of payments which are the same in size and occur in the same…

Q: You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: a) The computations as follows: Hence, the value of car if financed for 48 months is $20,476.57.…

Q: You are saving money to buy a car. If you save $310 per quarter starting three months from now at an…

A: An annuity is a series of a fixed amount of cash flows occurring at equal time periods for a…

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You want to buy a new sports coupe for $132,500, and the finance office at the dealership has quoted…

A: The effective annual rate is the effective interest rate applicable on the loan after taking into…

Q: You want to borrow $68,000 from your local bank to buy a new sailboat. You can afford to make…

A:

Q: Example A brand new, fully loaded Tesla Model S, costs $165,000. They offer financing for 8 years at…

A: Firstly  Total Amount to be paid as down payment is $10,000 Then remaining amount will be $165,000-…

Q: An auto dealer has designed a marketing gimmick. They are asking their customers to pay only $119 at…

A: Monthly payment can be calculated with the help of below expression:

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Given data; down payment amount = $3000 monthly payment = $400 Annual interest rate = 12% number of…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

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A: We will use the concept of time value of money here. As per the concept of time value of money the…

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A: Incremental rent per month due to reinovation = C = $ 729 - $ 521 = $ 208Payment frequency =…

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Value of Most Expensive Car that could be afforded = Down payment + Present Value of Annuity…

Q: You are making car payments of $315/month for the next 3 years, you know that your car loan has an…

A: Given details are : Monthly payment = $315 Time period = 3 Years Interest rate = 12.4% discounted…

Q: You want to buy a new sports coupe for $75,100, and the finance office at the dealership has quoted…

A: Loan Amount is $75,100 APR is 7.5% Total Number of months is 72  Monthly rate is 7.5%12=0.625% To…

Q: ou have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: The given problem can be solved using PV function in excel. PV function will compute present price…

Q: Jenny is thinking of buying a car costing $120,000 (including COE) as she is already spending about…

A: Effective annual interest rate (EAR) is one of the most important financial concepts that reveals…

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A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Computation of the value of car:Hence, the value of car if financed for 48 months is $22,161.14 and…

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A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: A new furniture set costs $ 2700. If you make a down payment of $ 300 and finance the rest at a rate…

A: The amount of repayment is the number of installments multiply by the installment amount. and the…

Q: You have saved RM 4,000 for a down payment on a new car. The largest monthly payment you can afford…

A: Given: Given:

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: What is your monthly payment if you choose 0% financing for 48 months?  $                     .…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: You have saved $4,000 for a down payment on a new car. Thelargest monthly payment you can afford is…

A: Given information: Down payment $4,000 Monthly payment of $350 APR is 12% Number of months 48 and 60

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A: The monthly payments is calculated by using fallowing formula       Present value P = Present value…

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Q: will it cost at that time.

A: This problem involves the calculation of future value which is given by the following formula: FV =…

Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: PV of annuity = P * [{1-(1+r)-n)} / r] where, P = Periodic paymentr = rate per periodn = number of…

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: The future value is the one calculated for the purpose of make an estimation that how much return a…

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A: A lease refers to a contract where one party gives another party the right to use property or…

Q: A new furniture set costs $ 2100. If you make a down payment of $ 700 and finance the rest at a rate…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.