7a) Replacing El Poderoso

Questions

• Assume the prof will finance $20,000 dollars¹and that interest in compounded monthly.
• What will be the monthly payments be over a three-year amortization plan? What are they over four years?[1]
• What is the net present value in the difference of the finance programs of the Golfand the Matrix?
• Assume the Volkswagen Dealer does not want to change his price: what equivalent price does the Toyota dealer have to offer to make the two cars prices equivalent?
• Assume neither dealer lowers their price: what value would the qualitative factors have to be in order to make the two cars prices equivalent?