You are planning to purchase a new car as your graduation present to yourself. The car you want can be purchased for $26,500 plus tax, title, and license, which will total $2,500. You plan to finance the car over five years. Use a loan calculator to determine your car payments under the following assumptions.
Required:
(a) You make a $2,500down payment and can obtain a loan rate for the balance at
(1) 4.5 percent.
(2) 5.0 percent.
(3) 6.0 percent.
(b) You make a $5,000down payment and can obtain a loan rate for the balance at
(1) 4.5 percent.
(2) 5.0 percent.
(3) 6.0 percent.