Question a Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3%interest. Assume her payments will be made at the end of each year 1–4. If Tori’s old car can be traded in for $3325, which is her down payment, what is the most expensive car she can purchase?
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Question a
Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3%interest. Assume her payments will be made at the end of each year 1–4. If Tori’s old car can be traded in for $3325, which is her down payment, what is the most expensive car she can purchase?
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- Yuli plans to purchase a vehicle, and she is working with two bank offers. . Bank One Loan Offer: $73,800, 6% annual interest, 60 months. . Bank Two Loan Offer: $73,800, 3% annual interest, 84 months. Yuli's ultimate financial goal is to select the loan with the lowest monthly payment regardless of duration. Based on her financial goal, which loan will Yuli choose? O A. Bank One: Loan Offer O B. Bank Two: Loan Offer OC. Both monthly payments are the same. O D. Not enough information given to answer the question.1. Rayleene is getting a loan to buy a used car from a seller on Kijiji. The price of the car is $9200.00. She has a down payment of $500.00 and is able to negotiate an interest rate of 4.5% from her bank. Rayleene is trying to decide whether to get her loan for 3 or 4 years. a. Use an online personal loan calculator to fill in the following table to help her decide: Amount of Principal Interest Rate Length of Loan 3 year loan 4 year loan Monthly Payment Total Payments (Monthly Payment x # of months) Total Cost of the Loan (Total Payments – Principal) b. Should Rayleene take her car loan out for 3 or 4 years? Why?Calculating payments, interest, and APR on auto loan After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $20,500 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $5,000. She plans to finance the rest with a $15,500, 48-month loan at a simple interest rate of 12 percent. What will her monthly payments be? Round the answer to the nearest cent.$ per month How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent.$ How much interest will Isabella pay over the full (48-month) life of the loan? Round the answer to the nearest cent.$ What is the APR on this loan? Round the answer to 1 decimal place. %
- Kat is looking to but her first car. She has figured that she can afford to make up to a $388 monthly payment to the bank for a car loan. She plans to pay off the car loan in 5 years and the bank is willing to give her a 6% interest rate, compounded monthly. What is the maximum amount she can borrow to purchase a car? (How expensive of a car can she afford) Round to the dollar $Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car two years from now. You have OMR9,000 to invest today and can earn 12% on invested funds. If your parents match the amount of money you have in two years, what is the maximum you can spend on the new car? Select one: O a. OMR19,250 O b.OMR15,000 O c. OMR22,579 O d.OMR 7,260 O e. OMR11,290Please provide working to the solution for the question below: You have just graduated and need money to buy a new car. Your rich Uncle Chan will lend you the money so long as you agree to him back within four years, and you offer to pay him the rate of interest that he would otherwise get by putting his money in a savings account. Based on your earnings and living expenses, you think you will be able to pay him RM5,000 in one year, and then RM8,000 each year for the next three years. If Uncle Chan would otherwise earn 6% per year on his savings, how much can you borrow from him?
- Answer the following questions and show all working using a financial calculator. Do NOT use excel: 1. You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan? 2. Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume herinvestment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways?a. Annually b. Quarterly c. MonthlyI need help creating this in Excel Jane wants to buy a new car but has decided that by the time she saves $33000 to buy the new car she wants the price of the car will have gone up. She decides to borrow the money and purchase the car today. She would like to pay off her car in four years. The local bank will loan her $33000 at 8.5% APR. Construct a loan amortization for her loan. She wants to know how much the payments will be and what the total cost of the loan is. The dealer has offered to finance her at 1% APR with a monthly payment of $250 for four years. Unfortunately the balance will be due at the end of four years. Construct a loan amortization for this loan. Jane wants to know how much she will owe at the end of the four years. You can fit them both on one spreadsheet. Upload your finished spreadsheet.You need to purchase a car, but don’t have the money to buy it outright. Therefore, you’ll have to borrow money for a loan. Your current situation is this:• The car you want to buy costs $11,999• You have $5500 saved for a down payment on the car.• The dealer offers add-on interest loans for 7% per year, for 1, 3, or 5 years.• You want to keep your car payments under $250 per month.(a) Calculate the monthly payments for 1, 3, or 5 years. Can you afford any of these loan terms?Explain.(b) Compute the total interest you’ll pay over the life of each loan
- Your friend is currently paying $734 in rent monthly in Fort Wayne and would rather apply the payment toward purchasing a home. If she can get a 30 year mortgage at 4.67% APR using her current payment amount, how much could she borrow? What could you type into Excel to calculate this value?Suppose Rachel and Nadia buy a house and have to take out a loan for $195500. If they qualify for an APR of 4% and choose a 30 year mortgage, we can find their monthly payment by using the PMT formula. If Rachel and Nadia decide to pay $1500 per month, we can use goal seek to see how many years it will take to pay off the loan. Use the PMT function and goal seek (as needed) to answer the following questions about Rachel and Nadia's mortgage. d. If they want to have monthly payments of $600 and still pay the loan off in 30 years, what interest rate would they have to qualify for?Instructions Answer the journal prompts according to the scenario below: Joe-Bob wants to buy a car and will need to take out a loan in order to make the purchase. His current monthly income is $3,500 per month. His mortgage payment is $900 per month, and his student loan payment is $350 per month. Note: You do not need to take taxes into consideration for this journal. According to the affordability formulas given, can he afford to take out another loan? • When should he follow the affordability formulas? In what cases should he not? • How could taking out the car loan impact his other priorities?