Considering purchasing a new car

Assignment Help Business Economics

Reference no: EM13994498

A college student in her senior year is considering purchasing a new car. The price of the car is $18,500, the sales tax is 8%, and the title, license, and registration fee is $450. The dealer offered to finance 90% of the price of the car for 48 months at a nominal interest rate of 9% per year, compounded monthly.

(a) How much cash does the student need to pay at the time she purchases the vehicle?

(b) How much is the monthly payment?

Reference no: EM13994498

Questions Cloud

Irrespective of economic conditions : Think about our economy. Irrespective of economic conditions, we consume many goods and services in various quantities. There is a constant allocation and re-allocation of resources. How does this happen? What economic mechanism helps allocate resour..

Tests of between-subject effects dependent variable : Interpret the following output examining group differences for purchase intentions. The three groups refer to consumers from three states: illinois, Louisiana, and Texas. Assume the significance level is 0.05. In 2-3 sentences, what assumptions can y..

Positive or a normative statement : Explain which of the following is a positive or a normative statement.

Decided to raise the target range for the federal funds rate : In December 2015 the FOMC decided to raise the target range for the federal funds rate. Suppose that an increase in the federal funds rate has the effect of decreasing aggregate demand. show the potential effects of a decline in aggregate demand in a..

Considering purchasing a new car : A college student in her senior year is considering purchasing a new car. The price of the car is $18,500, the sales tax is 8%, and the title, license, and registration fee is $450. The dealer offered to finance 90% of the price of the car for 48 mon..

Realism-liberalism-marxism and constructivism : How do the following theoretical frameworks of international relation and global politics view states and other actors in the international system: realism, liberalism, Marxism and constructivism?

If the government were to increase taxes on gasoline : If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..

Supply and demand in the cell phone market : Supply and Demand in the Cell Phone Market. As wages increase for Apple Workers, what happens to the price and quantity of iphones? As the price of drone phones decrease, what happens to the price and quantity of iphones? If the government taxes cell..

Possible effects that an increase in the wage rate : Describe the two possible effects that an increase in the wage rate can have on labor supply. Which effect do you expect to dominate under normal circumstances?

User Account

All Pages