Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price...
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Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price and the dealership fee is $525. He has a trade in car valued at $4000 and another $1000 for a down payment. The remainder of the balance is to be financed. There are two options for financing. Option 1: 0% APR for 5 years Option 2: 2.99% APR for 5 years and $1500 cash back a) What is the monthly payment for each option? b) Which is the better deal? Tony is purchasing a new car for 23,000. The tax is 7% of the purchase price and the dealership fee is $525. He has a trade in car valued at $4000 and another $1000 for a down payment. The remainder of the balance is to be financed. There are two options for financing. Option 1: 0% APR for 5 years Option 2: 2.99% APR for 5 years and $1500 cash back a) What is the monthly payment for each option? b) Which is the better deal?
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a To calculate the monthly payment for each option well first determine the amount Tony needs to fin... View the full answer
Related Book For
Personal Financial Planning
ISBN: 9781439044476
12th Edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
Posted Date:
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