Activity:

• Go to Honda Website.
• Assume that you want to buy a Honda 2023 Civic Sedan Touring.
• Choose Build, 2023 Civic Sedan Touring (everything loaded), Calculate monthly payment.

Assumption:

• You have no downpayment and no trade-in.
• You will finance your purchase (Not lease) with 84 months loan from Honda with monthly payment.
• You will check include Freight and PDI, Levies and Fees.
• You will ignore sales taxes (Include sales taxes unchecked)

Try the followings:

1. What is your monthly payment? Use the calculator available on Honda website (Bulild, Trim Sedan Touring, Choose Finance, Monthly)
2. Using BA2 Plus, calculate monthly payment. You can do this after reviewing Chapter 6 Annuity Concept. (Review Chapter 6 Annuity: use of [PMT])
3. Using Annuity formula, calculate monthly payment. You can do this after reviewing Chapter 6 Annuity Concept. (Review Chapter 6 Annuity: use of formula)
4. Using Excel, calculate monthly payment. (Hint: use of PMT excel function)

What would be the total interest you would have paid over 7 years (84 months)?

1. You walk into a Honda show room today. You want a good deal. How would you negotiate for a good deal?