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You are financing a car worth $ 2 6 1 9 4 . 1 5 with tax included. Interest rates are 1 1 . 9
You are financing a car worth $ with tax included. Interest rates are compounded daily. Payments are monthly and made at the end of the month. You will own the car in years. You have a down payment of $
Calculate the finance charge interest charged on purchase
Round your answer to two decimal places. Do not enter the dollar sign. Sample input:
Hint: Take the down payment off the total worth of the car including tax; this is your PVn Then, find the monthly payment by hand using the ordinary general annuity formula or use the TVM solver. You will need an interest conversion if you do this question by hand or Excel because we have daily interest but monthly payments; you will need a monthly periodic interest rate. Then find the total value of ALL your monthly payments eg PMT x Total Number of Monthly Payments and add this to your down payment; subtract the purchase price including tax of the car from this figurethe difference is the interest you'll pay for taking out an auto loan!
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