Calculate the monthly payment and amount financed

Assignment Help Financial Management

Reference no: EM131347674

Find a vehicle for sale online that you would like to buy then calculate the Monthly Payment (MP), Amount Financed (AF), Finance Charge (FC), and Deferred Payment Price (DPP).

The car I chose is: 2017 Ford Explorer

Ad Offer

0% APR for 48 months

Retail Price = $32,885

The answer needs to look exactly like the example below.

0% APR for 60 months

Retail Price = $23,070

My Calculations

Down Payment (DP) = $70

Monthly Payment (MP) = $16.67 x (23000 / 1000) = $383.41

Amount Financed (AF) = Retail Price - Down Payment = 23070 - 70 = $23,000

Finance Charge (FC) = (60 x MP) - AF = (60 x 383.41) - 23000 = 23004.6 - 23000 = $4.60

Deferred Payment Price (DPP) = (60 x MP) + DP = (60 x 383.41) + 70 = 23004.60 + 70 = $23,074.60

Reference no: EM131347674

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