6. Suppose Hassan decides to explore the costs of financing a more expensive vehicle. The more expensive vehicle costs $34,900 in total and qualifies for the 3.9% dealer financing for 48 months or $2500 cash back. What is the highest effective annual rate of interest at which Hassan should borrow from the bank instead of using the dealer's 3.9% financing?
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- Suppose Hassan decides to explore the costs of financing a more expensive vehicle. The more expensive vehicle costs $34,900 in total and qualifies for the 3.9% dealer financing for 48 months or $2500 cash back. What is the highest effective annual rate of interest at which Hassan should borrow from the bank instead of using the dealer's 3.9% financing?Suppose Karim decides to explore the costs of financing a more expensive vehicle. Themore expensive vehicle costs $34 900 in total and qualifies for the 3.9% dealer financingfor 48 months or $2500 cash back. What is the highest effective annual rate of interest at which Karim should borrow from the bank instead of using the dealer’s 3.9% financing?After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing through the dealer is no bargain. He has $2,100 cash for a down payment, so he needs an $8,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,400 for a period of two years at an add-on interest rate of 10 percent. a) What is the total interest on Richard’s loan? b) What is the total cost of the car? c) What is the monthly payment? d) What is the annual percentage rate (APR)?
- After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $1,500 cash for a down payment, so he needs an $8,500 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,500 for a period of four years at an add-on interest rate of 10 percent. (a) What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total interest (b) What is the total cost of the car? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Total cost (c) What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole…Caleb does not like the idea of taking out a loan to pay for a new vehicle. So instead, Caleb decides to invest $420 monthly into an. account paying 8% compounded monthly to save for a future vehicle. His goal is to save $30,000. How many full payments of $420 each month are needed? What is the balance of the account after all the full payments of $420 are deposited? $ How much will the last payment need to be to get $30,000? (If no additional payment is needed put 0): $21 After visiting several automobile dealerships, Richard selects the car he wants. He likes its $12,000 price, but financing through the dealer is no bargain. He has $2,400 cash for a down payment, so he needs a loan of $9,600. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $9,600 for a period of five years at an add-on interest rate of 13 percent. a. What is the total interest on Richard's loan? Total interest. b, What is the total cost of the car? Total cost c. What is the monthly payment? Monthly payment
- Ginny, who lives in Houston, is trying to decide between the following car models: Brand and Model Chevy Sonic Toyota Camry Ford Escape Hybrid Dodge 1500 Pickup Cost $14,255 17,950 30,570 37,590 She's currently accumulated a down payment of $5,000 and she has determined that she can afford maximum payments of $375 per month. Her initial research on the current cost of auto loans has found that her lowest cost loan would be made by a bank and would require an interest rate of 6% for five years. Given this information, the maximum amount that Ginny can afford to pay for her new car is can afford to purchase, without stretching her budget, is: OOO The Chevy Sonic The Toyota Camry The Dodge 1500 Pickup The Ford Escape Hybrid I and the most expensive car that sheAfter visiting several automobile dealerships, Richard selects the used car he wants. He likes its $12,900 price, but financing through the dealer is no bargain. He has $2,500 cash for a down payment, so he needs an $10,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,400 for a period of four years at an add-on interest rate of 10 percent. What is the total interest on Richard’s loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the total cost of the car? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the monthly payment? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.…Jackson investigated loans for a $15,575 car. What might happen if he found a car he liked for $10,000 A) he would have larger monthly payments B) the lenders will not lend him a smaller amount of money C) he would still have to take the bank loan offer D) the lender might give him a better interest rate on a smaller loan
- 8. Calculate: Nicholas is in the market for a used car. He has found the same sports car at two different dealerships and is now considering from which dealer he should purchase the car. Dealer 1 requires Nicholas to get the loan through its lending department. Dealer 1 has told Nicholas that, because the dealership does its own financing, it can get Nicholas the very best loan possible and Nicholas will only have to pay $247 per month for 60 months (5 years). Dealer 2 is selling the car for $12,000. Dealer 2 has told Nicholas he can use its financing or get his own lender, so Nicholas talked with his banir and learned that he can get a 5-year car loan for 4.9% APR. Dealer 2 has also offered Nicholas a 5-year loan for 5.9%. Based on these loan options, is Dealer 1's loan payment offer of $247 per month Nicholas's best deal? What is the lowest monthly loan payment Nicholas could get if the purchase price of the car is $17,000? a. $247 per month for 60 months from Dealer 1. b. $231 per…Dennis Lamenti wants to buy a new car that costs $15,177.57. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at 7 3/4% and requires a down payment of $1,000. The second is through his bank; it is a four-year simple interest amortized loan at 7 3/4% and requires a down payment of $1,000. (Round your answers to the nearest cent.) (a) Find the monthly payment for each loan. dealer ? bank ? (b) Find the total interest paid for each loan. dealer ? bank ?Suppose you want to buy a car. You have surveyed the dealers' newspaper advertisements, and the one shown has caught your attention. You can afford to make a down payment of $2,678.95, so the net amount to be financed is $20,000.(a) What would the monthly payment be?(b) After the 25th payment, you want to pay off the remaining loan in a lumpsum amount. What is this lump sum?