Question
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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started