Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help please Finance Charges. Bill wants to purchase a new car for $36,000. Bill has no savings, so he needs to finance the

i need help please
image text in transcribed
Finance Charges. Bill wants to purchase a new car for $36,000. Bill has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 9% and the maturity of the loan is six years. His monthly payments will be $648.92. Bill's monthly net cash flows are $349. Bill also has a credit card with a $7,100 limit and an interest rate of 15%. If Bill uses all of his net cash flows to make the monthly payments on the car, how much will he add each month to his credit card balance if he uses it to finance the remainder of the car? What will the finance charges be on his credit card for the first two months that financo charges apply? (Assume that Bill makes no payments on his credit card for the first two months.) The amount Bill will add each month to his credit card balance if he uses it to finance the remainder of the car is $(Round to the nearest cont.)

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_2

Step: 3

blur-text-image_3

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

Financial Whirlpools A Systems Story Of The Great Global Recession

Authors: Karen L. Higgins

1st Edition

0124059058,012405921X

More Books

Students also viewed these Finance questions

Question

Why do you think it happened?

Answered: 1 week ago