Question
Barb is buying a new car for $13,500. Her old car has a trade-in Value of $2500. The dealer informs her that the financing charge
Barb is buying a new car for $13,500. Her old car has a trade-in Value of
$2500. The dealer informs her that the financing charge is 7% add-on
interest. She wishes to take 2 years to pay off the car. Answer the
following.
How much is her down payment? [trade-in value of old car]
How much does she need to finance?
How much interest will she pay?
What will her monthly payment be?
What will be the total amount to be repaid? [not including down payment]
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Introduction To Financial Accounting
Authors: Charles T Horngren, Gary L Sundem
10th Edition
136122973, 978-0136122975
