What would be your monthly payment to pay off the loan

Assignment Help Financial Accounting

Reference no: EM13146211

Suppose you are in the market for a new car worth $22,000. You are offered a deal to make a $2,000 down payment now and to pay the balance in equal end-of-month payments of $505.33 over a 48-month period. Consider the following situations. A) Instead of going through the dealer’s financing you want to make a down payment of $1,800 and take out an auto loan from a bank at 9.2% compounded monthly. What would be your monthly payment to pay off the loan in four years? B) If you were to accept the dealer’s offer, what would be the effective rate of interest per month the dealer charges on your financing?

Reference no: EM13146211

Questions Cloud

What is currently the value of the firm : what is currently the value of the firm? if the owner presently receives an offer of $15050 for the firm and accepts it, what does that imply about his discount rate?

Under what conditions cells depend only on substrate level : Under what conditions cells depend only on substrate level phosphorylation for their production of ATP?

Determining project simple-regular payback : The project will generate positive cash flows of $85,000 a year at the end of each of the next five years. The project's NPV is $100,000 and the company's WACC is 10 percent. What is the project's simple, regular payback?

Why does the gene get copied in the mitochondrial dna : Why does the gene get copied in the Mitochondrial DNA before the original gene is transferred into the nucleus?

What would be your monthly payment to pay off the loan : What would be your monthly payment to pay off the loan in four years? B) If you were to accept the dealer’s offer, what would be the effective rate of interest per month the dealer charges on your financing?

What is the shape of the comparison distribution : The samples a group of 100 new fathers and finds that their mean is 64.5. What is the shape of the comparison distribution?

Define what is the molar concentraion of the salt solution : what is the molar concentraion of the salt solution formed n this reaction? B. what is the molar concentraion of the excess reactant once this reaction has finished?

Overtime wages expensed : A candy factory's employees work overtime to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime wages should be expensed in ??

What is the minimum monthly income needed to purchase : A lender requires that monthly mortgage payments be no more than 25% of gross monthly income with a maximum term of 30 years. If you can make only a 15% down payment, what is the minimum monthly income needed to purchase a $300,000 house when the ..

User Account

All Pages