Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dean is planning to purchase a new NissanAltimawhich costs$26,865.He has saved up $3,200 to put toward it.He is thinking about getting a loan for it

Dean is planning to purchase a new NissanAltimawhich costs$26,865.He has saved up $3,200 to put toward it.He is thinking about getting a loan for it from his credit union, but he could also keep driving his beat-up old car for a while longer and save up cash for the new one.

Possibility Two: Saving Up

Assume Dean puts his $3,200 in his savings account, which has an APR of 1.2%.Dean knows he could afford the monthly loan payment that we calculated earlier.If he deposits that amount into his savings account every month how many years will it take him to save up for the car? Round your answer to two decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: John P. Wiedemer, ‎ Keith J. Baker

9th edition

324181426, 324181425, 978-0324181425

More Books

Students also viewed these Finance questions

Question

14. Let X be uniform over (0, 1). Find E[X|X Answered: 1 week ago

Answered: 1 week ago