Problem 5: You are buying a car. The one you have choosen to purchase is going to
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Problem 5: You are buying a car. The one you have choosen to purchase is going to cost you $32,985. Your car salesman has told you that you can purchase this vehicle for $525 per month for 72 months. What interest rate will you be paying? | Problem 6: You are not quite sure about the car deal in Problem 5. So the car salesman now tells you that the company is offering a bonus if you buy the car today. You can either choose to get a $2500 discount on the car price, or zero percent financing. Which option is the best deal? Please compute the PMT for both options to find out. | |||||||
Cash back deal | Zero financing deal | |||||||
NPER | 72 | NPER | 72 | 72 | ||||
I/Y (Rate) | ? | I/Y (Rate) | 0.38% | 0.00% | ||||
PV | 32,985 | PV | 30485 | 32985 | ||||
PMT | 525 | PMT | ? | ? | ||||
FV | 0 | FV | 0 | |||||
Compounding Periods | 1 | Compounding Periods | ||||||
CPT (Compute) ? | 0.38% | CPT (Compute) ? | $484.76 | $458.13 | ||||
Related Book For
Physics of Everyday Phenomena A conceptual Introduction to physics
ISBN: 978-0073512112
6th edition
Authors: W. Thomas Griffith, Juliet W. Brosing
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