Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help! I think I'm either applying the wrong value formula or inputing it into the caculator wrong plz help! Suppose you take out a

Please help! I think I'm either applying the wrong value formula or inputing it into the caculator wrong plz help!

Suppose you take out a loan for $26,800 to purchase a 2017 Nissan Altima. Nissan offers $500 cash back (which you use as part of the down payment), and you also put $2,000 of your own money down (so a total down payment of $2,500). The loan is for six years at 3.75% interest with monthly payments, and monthly payments begin one month after purchasing the car. After two years of payments (24 payments), what is the principle remaining on the loan? (This is the payoff amount needed to buy the car after two years of payments). As always, do not round computations until reporting the final answer. Round the final answer to the nearest $0.01.

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

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

6th Edition

0073226386, 978-0073226385

More Books

Students also viewed these Finance questions

Question

20. What do you want them to do? (what actions should they take)?

Answered: 1 week ago