Your second financing option for the SUV is the dealership will take $500 off the original $22,510 price of the SUV and you finance the rest at 0% APR for 36 months. How much will you be financing? $ How much will your monthly payments be under this financing option? (Round to the nearest dollar.) $ How much total money will you pay for the SUV at the end of the 36 months under this financing option? $
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: Sandy is buying a new chair for $36,425, including a shipping charge of $1300. She is considering…
A: Present value of annuity is the stream of cash flows that are required to be invested today in order…
Q: You are at a dealership considering the purchase of a car that would cost $34,000 if paid for in…
A: We shall use Excel's =NPER formula to calculate the total payments that would be required under the…
Q: After deciding to buy a new car, you can either lease the car or purchase it on a three-year loan.…
A: The decision regarding whether to buy the asset which here is the car or to opt for the lease…
Q: If I buy a truck at17,000 and plan to finance my purchase with a loan and repay over two years. The…
A: Equated monthly instalment refers to the monthly payment of loan to be paid for the loan taken. It…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You are going to buy a new rooftop tent for your SUV/Truck. You can either pay $2,100 today for the…
A: We have to calculate present value of both option to compare which option is preferable.
Q: Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal…
A: Loan is a value which is taken from external sources like banks and this amount is repaid in fixed…
Q: Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller…
A: If it had been normal payments we would have used the simple formula. However, since there is a…
Q: Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license…
A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…
Q: You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount…
A: PMT is the periodic payment.
Q: Parker has two options for buying a car. Option A is 1.6 % APR financing over 60 months and Option…
A: Ordinary annuity is the PMTs which are done at the END of the period.
Q: You are considering purchasing a 2021 RX Hybrid for $47,920. The Lexus dealer is offering the…
A: In this question all the option have mortgage in it and monthly payment is required.
Q: Easton has two options for buying a car. Option A is 1.5% APR financing over 36 months and Option B…
A: Installment is the amount of periodic payments a borrower pays to the lender in order to pay back…
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: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…
Q: Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller…
A: We use pmt function in excel to solve the problem
Q: You are interested in leasing a car for $425 per month, due at the beginning of each month. Using an…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: You want to buy a new sports car from Muscle Motors for $44,000. The contract is in the form of an…
A: The monthly payment can be calculated with the help of present value of annuity due function.
Q: A computer dealer offers (a) to lease a system to you for $50 per month for two years. At the end of…
A: Basic Details: Interest = 12% Number of Months = n = 24 Months Option A: Lease Amount Per Month =…
Q: You are thinking of renovating a basement apartment beneath your house, which you currently rent out…
A: Incremental rent per month due to reinovation = C = $ 729 - $ 521 = $ 208Payment frequency =…
Q: Your friend Zoe is planning to buy an outdoor patio set from a furniture store. The MSR the marked…
A: Given information : Marked price : $12,000 Zero interest financing plan : $500 for 24 months One…
Q: You are considering two options in purchasing an automobile:Option A: Purchase the vehicle worth…
A: montlhy payment formula: monthly payment =p×rm1-1+rm-m×n where, r=rate m=frequency of compoundong…
Q: Consider the following two options proposed by an auto dealer:• Option A: Purchase the vehicle at…
A: option A: monthly payment formula: pmt=p×rm1-1+rm-m×n where, p=principal r=rate of interest n=number…
Q: Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has…
A: APR or Annual Percentage Rate is defined as the annual interest, which are generated through sum…
Q: You plan to purchase a $500,000 home with a 20% down payment. You can take out a 30-year FRM of…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: leasing a car for 48 months where the advertisement says that monthly payments are $399 with $5,000…
A: Lease payment must be according to the minimum interest rate that must be satisfied given present…
Q: You plan to purchase a house for $400,000 and you will make a 20% down payment. You are evaluating…
A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…
Q: Ben Halls is trying to decide whether to lease or purchase a new car costing $18,000. If he leases,…
A: An asset can be procured by choosing either of options i.e. lease or purchase option. To select the…
Q: You want to buy a car. A dealership in town has the SUV you want to buy for $22,510. Your first…
A: Loan is contract between lender & borrower where lender provide funds to borrower which is paid…
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: If a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: If you need to take out a S50,000 student loan 2 years before graduating, which loan option will…
A: Here, Amount of Loan is $50,000 The loan has been taken before 2 years from graduation and has…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: INTRODUCTION: The term "annual percentage rate" (APR) describes the annual interest that is produced…
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: Adam can purchase a new car for $30,000. Alternatively, in addition to a down payment of $2,200,…
A: There are two options either pay the whole amount upfront or lease the vehicle for 3 years. Paying…
Q: A database marketing firm can lease its computer equipment with beginning-of-quarter payments of…
A: Quarterly lease payment (Q) = $10,000 Loan amount (L) = $131,200 Resale value (Z) = $33,000…
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: 1. What would be the principal of the loan if you chose Option 1? (Hint: don’t forget the down…
A: Amortization: It refers to the process of paying the loan off by making fixed payments. These…
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: Goran plans to buy a used truck that costs $15,000. The dealer requires a 20% down payment. The rest…
A: A down payment is an initial amount paid in cash for the purchase of goods or services before…
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a…
A: Installment Purchase: Buying a product over a long period of time. The buyer receives immediate…
Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $145,000. Chuck can get a…
A: Solution- A: Principal due = 145000*(1-15%) = 123250 Total due = P*(1+rt) = 123250*(1+ 42*7.45%/12)…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
- Easton has two options for buying a car. Option A is 1.5% APR financing over 36 months and Option B is 5.5% APR over 36 months with $1800cash back, which he would use as part of the down payment. The price of the car is $35,042 and Easton has saved $3500 for the down payment. Find the total amount Easton will spend on the car for each option if he plans to make monthly payments. Round your answers to the nearest cent, if necessary. Option A: $ Option B: $You want to buy a car. A dealership in town has the SUV you want to buy for $22,510. Your first financing option is to make a down payment of $2500 and finance the rest at 2.99% APR for 72 months. How much will you be financing? $ How much will your monthly payments be under this financing option? (Round to the nearest dollar.) $ How much total money will you pay for the SUV at the end of the 72 months under this financing option? (Don't forget to include your down payment in this total amount.) $Sandy is buying a new chair for $36,425, including a shipping charge of $1300. She is considering the following two credit options: •Financing through the dealership at 4.3%, compounded monthly, for a term of four years, with the incentive that the dealership will Pay the $1300 shipping charge • A bank loan at 4%, compounded monthly, for a term of five years a) what are the monthly payments for each option? b) what is the total payment for each option? c) what are the advantages and disadvantages of each option?
- You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a ballon payment at the principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now?After deciding to acquire a new car, you can either lease the car or purchase it with a three-year loan. The car you want costs $37,000. The dealer has a leasing arrangement where you pay $2,400 today and $580 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6 percent. You believe that you will be able to sell the car for $22,000 in three years. a. What is the present value of leasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of purchasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What break-even resale price in three years would make you indifferent between buying and leasing?Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license fees. The dealership gives you two financing options: 1) Option A: The dealership takes $800 off the price of the car. You must make a down payment of $2000 and can finance the rest at 2.99% APR for 72 months. a) How much will you be financing? b) How much will your monthly payments be under this option? (Round to the nearest dollar.) c) How much total money will you pay under this option? (Don’t forget to include your down payment.) 2) Option B: The dealership takes $1000 off the price and 0% financing for 36 months. a) How much will you be financing? b) How much will your monthly payments be under this option? (Round to the nearest dollar.) c) How much total money will you pay under this option? 3) Would you choose option A or option B? Why?
- Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing-that is, a loan from the current owners of the agency. The loan will be for 2,100,000 financed at an APR of 8 percent compounded monthly. This loan will be paid off over 7 years with end o month payments, along with a 600,000 balloon payment at the end of year 7. That is, the 2.1 million loan will be paid off with monthly payments, and there will also be a final payment of 600,000 at the end of the final month. How much will the monthly payments be?After deciding to acquire a new car, you realize you can either lease the car or purchase it with a two-year loan. The car you want costs $34,000. The dealer has a leasing arrangement where you pay $97 today and $497 per month for the next two years. If you purchase the car, you will pay it off in monthly payments over the next two years at an APR of 6 percent. You believe that you will be able to sell the car for $22,000 in two years. What is the present value of purchasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value of lease $ What is the present value of leasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value of purchase $ What break-even resale price in two years would make you indifferent between buying and leasing? (Do not round intermediate calculations and round your answer to 2…You are thinking of renovating a basement apartment beneath your house, which you currently rent out for $521 per month. If you renovate the apartment, you could get $729 per month instead, starting next month. Assume renovations would cost $10,000, paid immediately, and would take very little time to complete so there’d be no delay in rental income. Assume monthly rental income would last for the foreseeable future (aka forever). If the applicable discount rate is 6% per year, what is the net present value (NPV) of the renovations? Round to the nearest cent.
- Consider the following two options proposed by an auto dealer:• Option A: Purchase the vehicle at the normal price of $26,200 and pay forthe vehicle over 36 months with equal monthly payments at 1.9% APRfinancing.• Option B: Purchase the vehicle at a discounted price of $24,048 to be paid immediately.The funds that would be used to purchase the vehicle are presently earning 5% annual interest compounded monthly.Which option is more economically sound?You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 5.2 percent for a 60-month loan to buy the car. a. What will your monthly payments be? b. what is the effective annual rate of this loanRoger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing—that is, a loan from the current owners of the agency. The loan will be for $2 million financed at an APR of 7 percent compounded monthly. This loan will be paid off over 5 years with end-ofmonth payments, along with a $500,000 balloon payment at the end of year 5. That is, the $2 million loan will be paid off with monthly payments, and there will also be a final payment of $500,000 at the end of the final month. How much will the monthly payments be?