What is the monthly loan payment

Assignment Help Business Economics
Reference no: EM131096213

You just graduated college and want to celebrate by buying a new car. The car you like can be purchased for $35,000. Your old college clunker is worth $4,000 on a trade. The car dealership is offering two payment methods, both of which will require taking out a loan and paying it back at the end of each month for 5 years beginning at the end of month 1.

a) Method 1: The dealer is offering 0.9% per year financing on the entire purchase price. What is the monthly loan payment?

b) Method 2: You can take a rebate of $2,500 cash and loan the remaining amount of money at 2.9% per year. What is the month loan payment under this option?

Reference no: EM131096213

Questions Cloud

Low income countries begin to experience economic growth : When low income countries begin to experience economic growth, they often do so at rates much higher than current growth rates of industrial nations. Which of the following does NOT provide an explanation of this phenomenon.
Considering expanding into international markets : You work for a hotel chain that is considering expanding into international markets and you are looking for the right person to help oversee that process. You identify a top employee at another firm who seems to have exactly the skill set needed to h..
An algorithm needs first sets computed : The algorithm presented in Figure 4.8 retains no information between invocations of FIRST. As a result, the solution for a given nonterminal might be computed multiple times.
Marginal utility of a consumer : When is marginal utility of a consumer is equal to average utility in a market where there is every kind of products and the consumer is constrained by scarcity choice?
What is the monthly loan payment : You just graduated college and want to celebrate by buying a new car. The car you like can be purchased for $35,000. Your old college clunker is worth $4,000 on a trade. The dealer is offering 0.9% per year financing on the entire purchase price. Wha..
What is the equation for demand : a. What is the equation for demand?  What is the equation for supply? b. At a price of $9, what is the price elasticity of demand?  What is it at price of $12?
How world war i lead to the treaty of versailles : Write an eight paged double spaced paper about the world war 1 and how it lead to the Treaty of Versailles.
What is big o notation : What is big o notation? Explain with example
The reduced regression models for testing for interaction : b. State the reduced regression models for testing for interaction and factor A and factor B main effects, respectively. Fit these reduced regression models.

Reviews

Write a Review

Business Economics Questions & Answers

  Net investment becomes negative

When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases.

  Public services worth

Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..

  Average income in the town increases

If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.

  Productivity falls relative to brazilian productivity

If the Brazilian demand for American exports rises at the same time that U.S. productivity falls relative to Brazilian productivity, then, in the long run, ________, everything else held constant.

  What is effective interest rate-calculate monthly payment

A bank is offering a loan of $12,000 with a yearly interest rate of 12% compounded monthly and payable in 48 months. Calculate the monthly payments This bank also charges a loan fee of 4% charged at the time of the closing of the loan. What is the ef..

  Production possibilities frontier

Exhibit 2-8 represents Robin Hood’s production possibilities frontier. Assume that he currently produce at point G inside the production possibilities frontier.  He can produce more bows employing the existing resources more efficient. He can increas..

  Corresponding formulas for marginal benefit-marginal cost

Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. What ..

  What were the banks reactions

What are some of the steps that the Federal Reserve took in 2008 to prevent further contractions of the economy and money supply? What were the banks' reactions?

  Current account balance and the capital account balance

Compare and contrast the effects of a quota and a tariff on imports. Be sure to include both short-run and long-run effects in your answer. Differentiate between the current account balance and the capital account balance.

  Price elasticity of the firms demand curve is equal to one

If a monopolist produces clear spring water at zero total cost, its total revenue will be maximized where, The price elasticity of the firm's demand curve is equal to one

  Define the natural rate of unemployment

Define the “natural rate of unemployment” and show that its two equations are equivalent. What are its causes and what is its significance for public policy? Define “structural unemployment” and explain its causes. Use a labor market diagram to show ..

  Two firms are planning their marketing strategies

Firm K can earn $35 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns $26 million if firm L responds with strategy P and..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd