You want to buy a new car, but you can make an initial payment of only $1,300 and can afford monthly payments of at most $825.   a. If the APR on auto loans is 9% and you finance the purchase over 36 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.)         b. How much can you afford if you finance the purchase over 48 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Q: Suppose you are planning to buy a car and just found one that is selling for $5,700. You have $1,000…

A: Equated monthly payment is a fixed payment given by the borrower of the loan to the lender on a…

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

A: In order to finance the purchase of an asset individual can take loan from the bank and repay the…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan would be fully amortized…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: You want to borrow $64,000 from your local bank to buy a new sailboat. You can afford to make…

A: The amount to be borrowed is $64,000 The monthly payment that can be afforded is $1,100 The time…

Q: You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted…

A: The car loan is a contract where car buyer is allowed to take delivery of car by making small…

Q: What monthly payment will she be required to make if the car is financed over a period of 24 months?…

A: Loan Monthly Payments: These are payments made by the borrower to the lender for the purpose of…

Q: Assuming that the dealership offers you 5-year loan at 4.7% compounded monthly, what payments would…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: You want to borrow $44,965 from your local bank to buy a new sailboat. You can afford to make…

A: Solution Given Amount to be borrowed $44965 Monthly payments $1140 Number of period…

Q: You wish to buy a $10,000 dining room set.  The furniture store offers you a three-year loan with an…

A: Given information: Present value or principal value is $10,000 Number of years of loan is 3 Interest…

Q: You are buying a new car, and you plan to finance your purchase with a loan you will repay over 48…

A: Given Information: If debt financing is opted: Amount borrowed will be $13,000 APR is 3.9% If rebate…

Q: You just bought a used car for $11,000 with no down payment using dealer financing at 4% APR…

A: Price of the Car is $11,000 APR is 4% compounded monthly Monthly payment is $300   To Find:- Time…

Q: You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: ou need a new car and the dealer has offered you a price of $20,000​, with the following payment​…

A: Option A - pay cash and receive a $2000 rebate. Cash to be paid = $20,000 - $2000 = $18,000 Option…

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 $75,300, and the finance office at the dealership has quoted…

A: Loan amount (PV) = $ 75,300 Interest rate = 7.7% Monthly interest rate (r) = 7.7%/12 =…

Q: You want to borrow $65,000 from your local bank to buy a new sailboat. You can afford to make…

A: APR or Annual Percentage Rate implies for interest rate applicable on borrowed amount for each year…

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

A:

Q: If you want to buy a car, and you can afford a monthly payment of $425, how large of a loan can you…

A: Using excel PV function to get the loan amount

Q: A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must…

A: Effective annual rate: It is the rate which is compounded annually.

Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…

A: The amount that can be borrowed should equal the present value of future payments. This is based on…

Q: A car dealer offers to buy your car for $9,500 so that you can purchase a new one. If your monthly…

A: The question is based on the concept of calculation of present value of future loan payments and get…

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the…

A: The loan which is paid-off by making installment payments having two components as interest mount…

Q: Suppose that you decide to buy a car for $28,635, including taxes taxes and license fees. You saved…

A: Car cost=28635 Saved =7000 period (4*12) = 48 interest (6.87%/12) = 0.57%                 G H…

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 want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years.…

A: Purchase Price of Car = 10,000 Time Period (N) = 6 years i.e. 72 months Down Payment = 10% Loan =…

Q: Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a…

A: Monthly payment can be calculated using the present vale of annuity formula. Present value of…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: An effective annual rate is the modified interest rate from the nominal rate that represents the…

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: 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…

Q: The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the…

A: Cost of car = $32,000 Down Payment = 25%  Interest Rate = 6% compounded monthly Loan amount = Cost…

Q: You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the…

A: Time value concept Receiving the value today is of more value than that of receiving the same amount…

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

A: Present value is the value of the money in present times which is expected to be received in some…

Q: For the car loan described, give the following information. A car dealer will sell you the $30,350…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: You need a new car and the dealer has offered you a price of $20,000​, with the following payment​…

A: The net present value is a method of discounting cash flows and adding them to find the value of the…

Q: If you make monthly payments for 4 years, what is the total amount of interest that you'll end up…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

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: To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the…

A: The APR is the annualized measure of the costs of borrowing, the APR will increase when the cost of…

Q: After starting your first full-time job out of college, you decide to buy a new car for $12,000.…

A: To create the amortization and table and find the balance after 15th payment, we first have to find…

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: he price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the…

A: Repayment of loan is made in fixed amount of instalments which includes interest and part of…

Q: You want to buy a new sports coupe for $87,500, and the finance office at the dealership has quoted…

A: As per the given information: Present value (P) - $87,500 APR - 6.9% Monthly APR (I) - 6.9%/12 =…

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…