Purchase Price $33,500.00 Finance Rate Table less Term No Rebate Rebate Down Payment $3,500.00 1 12.50%
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Question:
Purchase Price | $33,500.00 | Finance Rate Table | ||||
less | Term | No Rebate | Rebate | |||
Down Payment | $3,500.00 | 1 | 12.50% | 19.70% | ||
Trade-in Value | $4,500.00 | 2 | 14.90% | 20.90% | ||
Rebate | $1,000.00 | 3 | 17.30% | 22.10% | ||
4 | 18.50% | 23.30% | ||||
Loan Amount | $24,500.00 | 5 | 19.70% | 24.50% | ||
--------------------Term of Loan----------------------- | ||||||
1 | 2 | 3 | 4 | 5 | ||
Finance Rate | 19.70% | 20.90% | 22.10% | 23.30% | 24.50% | |
Monthly Payment | $2,266.03 | $1,257.75 | $936.93 | $789.29 | $711.94 | |
Total Payment | $27,192.35 | $30,185.89 | $33,729.63 | $37,886.09 | $42,716.61 | |
Finance Charge | $2,692.35 | $5,685.89 | $9,229.63 | $13,386.09 | $18,216.61 |
Please answer the following below using your Automobile Loan Calculator workbook along with the following information:
- Purchase Price is $33,500
- Down Payment is $3,500
- Trade-in Value is $4,500
- Customers get $1,000 if they elect to take the Rebate
- Use the Finance Rate Table provided below:
-
Term No Rebate Rebate 1 12.5% 19.7% 2 14.9% 20.9% 3 17.3% 22.1% 4 18.5% 23.3% 5 19.7% 24.5%
A) If a customer elects to take the Rebate, what is the Loan Amount?
B) If a customer does not elect to take the rebate, what would the monthly payment be for a 3-year loan?
C) If a customer elects to take the $1,000 Rebate, what would be the Total Payments for a 5-year loan?
D) What is the difference in Monthly Payment amounts for customers who do and do not elect to take the Rebate for a 1-year loan?
E) What is the difference in Finance Charges for customers who do and do not elect to take the Rebate for a 1-year loan?
Related Book For
Statistical Techniques In Business And Economics
ISBN: 9781260239478
18th Edition
Authors: Douglas Lind, William Marchal, Samuel Wathen
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