You need an automobile loan of $24,000 after the trade-in and down payment. You are trying to decide between two choices. a. Receive a loan and pay 0.75% APR for 36 months through the dealership. Find the monthly payment and the total amount paid. b. Pay cash to receive a $1500 discount and obtain a loan for the difference at a bank at 8.5% APR for 36 months. Find the monthly payment and the total amount paid.
To calculate: The monthly and total amount to be paid if automobile loan charged at APR for on an amount of .
Principle amount of automobile loan is .
Annual percent rate of loan is .
Time for monthly house payments is .
Amortization formula is,
Is periodic amount.
is the principle or initial amount.
is the interest rate as Annual percentage rate (APR) as a decimal divided by number of annual interest payments.
Is the total number of payments.
Solve the relation by simplifying the value of as required in solution.
Consider the values to calculate the amount, using the given information the total amount is as follows,
To calculate: The monthly and total amount to be paid if automobile loan charged at APR for with discount of .
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