Financial arm-determine the interest rate

Assignment Help Business Economics

Reference no: EM13815196

Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on this car loan.

A. 6.6%

B. 6.0%

C. 5.2%

D. 5.8%

Reference no: EM13815196

Questions Cloud

Estimates of the price elasticity of demand for auto driving : Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or L0.07 per litter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while B..

Example of each of the four types of market failure : 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? -List and give an example of..

Determine interest rate that he is paying on this car loan : Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..

How victims of domestic violence receive help through police : Within your posting, describe how victims of domestic violence receive help through the police, through the courts, and through social agencies

Financial arm-determine the interest rate : Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..

Planning on repaying a debt : John is planning on repaying a debt of $25,000 with a quarterly payment $1,200 for the next 23 quarters and a final payment of “X” dollars at the end of 24-th quarter. If the interest rate is 12% per year, compounded quarterly, what will be John’s ..

Who are the key people in the given article : Who are the key people in The article "The Illusion of Change: Women and the American Revolution" by Joan Hoff Wilson?

What are the characteristics of a PC firm : What are the characteristics of a PC firm? Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits.

Discuss the specific adverse effects of marijuana : Discuss the specific adverse effects of marijuana on driving skills. Conclude your discussion by offering your view to the following: based on what is known, should DUI include driving under the influence of marijuana

User Account

All Pages