Question
Please use Excel Assume that you plan to purchase a new car. You have already applied and been accepted for an automobile loan through your
Please use Excel
Assume that you plan to purchase a new car. You have already applied and been accepted for an automobile loan through your local credit union. The loan can be for an amount up to $35, 000, depending on the final price of the car you choose. The terms of the loan call for monthly payments for a period of 5 years at a stated interest rate (APR) equal to 6 percent. After selecting the car you want, you negotiate with the sales representative and agree on a purchase price of $32,520, which does not include any rebates or incentives. The rebate (discount) on the car you chose is $4,500. The dealer offers 0% financing, but you forfeit (lose) the $4,500 rebate (discount) if you take the 0% financing. What would be the monthly payments for each financing alternative?
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