You are in need of a car. After much research you have decided to purchase a new
Question:
You are in need of a car. After much research you have decided to purchase a new 2023 Toyota Camry. The list price for the car at the local dealership is $25,945 including tax, title, and license. When you visit the dealership the finance manager provides you with three purchasing options.
Option A: 5.64% APR, compounded monthly, for 72 months with $0 down at the time of purchase Option
B: 0% APR, compounded monthly, for 48 months with $1000 down at the time of purchase Option
C: 5.49% APR, compounded monthly, for 60 months with $5000 down at the time of purchase
For each purchasing option, compute the required monthly payment, the total amount you will have paid for your car, and • for the first loan payment, how much money will go towards interest and how much money will go towards the outstanding balance?
Step by Step Answer:
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta