Question
Analyze the problem below then draw a (cash flow diagram) using the following information. Not all information shown is required, focus on the actual cash
Analyze the problem below then draw a (cash flow diagram) using the following information. Not all information shown is required, focus on the actual cash paid out or received.
Phil is purchasing a used vehicle to drive to school. The purchase price is $10,000, but he is financing much of the purchase through the dealer. He is paying $2,000 as a down payment from savings from his summer job. He is financing the balance over 36 months at 6% per year, so his monthly payment will be about $245. His monthly insurance, gas, and taxes will be about $200 each month. In addition, the car will need new tires, which he expects to buy at the end of the 3rd month. He is only in Kansas for 9 months, so he expects to sell the car when he leaves and should be able to get paid $6,200 for it then. His loan balance (what he will need to pay the lender) will be about $6,100. Draw the cash flow diagram for Phil's cash activities (9 months), OR create a table in Excel, then insert a Stacked Bar Chart for the diagram.
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