Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

really need help on loans, thank you so much ! Clearly and neatly show all work for each problem. Round all final answers to the

really need help on loans, thank you so much !
image text in transcribed
Clearly and neatly show all work for each problem. Round all final answers to the nearest dollar. Do not round intermediate work. Fitzwilliam is buying a new car. The sticker price for the base model is $10,000, but the options he wants will cost him an extra 15%. He then talks the dealer into giving him 10% off. Fitzwilliam has also decided to put down a 25% down payment on the car. - Find Fitzwilliam's down payment on the car. - Find the balance that Fitzwilliam needs to finance. Fitzwilliam has three options for financing for the balance on the car: the dealership, the bank, or his parents. - Through the dealership he can get a 60 month, 5% APR monthly installment loan. The bank will offer Fitzwilliam a 5.5\% APR monthly installment loan for 48 months. His parents would loan him the money and he would need to pay it all back after 15 months with 20% (simple) interest. - Find Fitzwilliam's monthly payment on the dealership loan. - Find Fitzwilliam's monthly payment on the bank loan. - Find the amount Fitzwilliam would owe his parents after 15 months. - Find the amount of interest that Fitzwilliam would need to pay on each loan. - Which option would you suggest for Fitzwilliam? Justify your choice

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: Wolfgang Breuer, Claudia Nadler

2012th Edition

3834934496, 978-3834934499

More Books

Students also viewed these Finance questions

Question

26. Name at least two ways a gene could influence alcoholism.

Answered: 1 week ago