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Assume you're buying a used 2019 Nissan Murano with (65,887 km) for 27,999+ TAXES Assume a 12% down payment. Calculate the monthly loan payment on

Assume you're buying a used 2019 Nissan Murano with (65,887 km) for 27,999+ TAXES

Assume a 12% down payment. Calculate the monthly loan payment on the remaining amount (total price - 12% down payment) if paid monthly over 5 years. Assume a car loan rate of 8% compounded monthly. (10 marks)

the following format, may help refresh your memory of the calculator functions for this step:

Set your BAII Plus Calculator to END.

Set your P/Y = 12 for monthly payments

Set your C/Y = 12 for monthly compounding

PV = The initial amount of your car loan (= purchase price down payment)

FV = Zero (in the future your loan balance will be completely repaid)

N = 60 (5 years x 12 monthly payments)

I/Y = 8

CPT PMT= Your monthly loan payment.

A3. Make the following assumptions:

Your future income = $45,000/year

You pay $1200/month in rent

You have a cell phone bill of $75/month

You have a student loan payment of $200/month

You have a VISA card with a $1000 limit and $1000 outstanding balance

Car insurance will cost $3000/year

Groceries cost you $100/week

Gas will cost you $50/week

You have no other expenses.

Calculate your TDSR and your Debt-to-Payments Ratio given the above-mentioned assumptions and including the car loan payment you just calculated. (12 marks)

Would you qualify for this purchase? (2 marks)

A4. When TDSR exceeds the maximum allowable limit, what are four options that you could consider based on your spending above?

(8 marks)

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