Quarterly payments on the down-payment loan

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Reference no: EM131314010

1. Tom plans to buy a Mazda 6 for $32,000 from a local automobile dealer in two years. He plans to place a down payment of $12,000 and borrow $20,000 from the dealer using a four-year loan, payable monthly at 8% APR. What will be Tom’s quarterly payments on the down-payment loan? What will be the balance on the loan after he has made 10 monthly payments? 2. You plan to borrow $50,000 from the local bank. After doing your due diligence, your options boil down to two. You have the option of option A; a 5-yr loan, 10% annual percentage rate, compounded daily, payable at the end of 5 years, or B; a 5-yr, 10% annual percentage rate loan, compounded continuously, also payable after 5 years. If your goal is to minimize cost, holding everything else constant, which option would you choose? Explain your answer and show

Reference no: EM131314010

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Quarterly payments on the down-payment loan : Tom plans to buy a Mazda 6 for $32,000 from a local automobile dealer in two years. He plans to place a down payment of $12,000 and borrow $20,000 from the dealer using a four-year loan, payable monthly at 8% APR. What will be Tom’s quarterly payment..

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