Question: (Quantitative Questions - Show Work) Suppose you purchase a new car for $27,000. You do not have money in your bank today but since you

(Quantitative Questions - Show Work) Suppose you purchase a new car

(Quantitative Questions - Show Work) Suppose you purchase a new car for $27,000. You do not have money in your bank today but since you have just graduated from UTSA and have a job with high five figure annual salary, you see no problems in taking a five-year loan from your dealer. After looking at your options, you agree to the following terms: 0% down payment with 6.75% APR (compounded monthly). The loan must be paid back in monthly payments over the five years. Answer the questions below (round to nearest cent) a. How much do you need to pay each month? $ (Make sure you draw a timeline for this part) b. In the first month, how much of the payments goes towards paying off: i. Principal? $ ii. Interest payments? $ c. How much principal is remaining after the first month? $ d. How much will you pay in interest during the entire second year? $ e. Suppose you want to sell the car after 3 years (36 months). When you sell the car, you must pay off the remaining loan (principal). How much do you still owe? $ (Make sure you draw a timeline for this part) (Quantitative Questions - Show Work) Suppose you purchase a new car for $27,000. You do not have money in your bank today but since you have just graduated from UTSA and have a job with high five figure annual salary, you see no problems in taking a five-year loan from your dealer. After looking at your options, you agree to the following terms: 0% down payment with 6.75% APR (compounded monthly). The loan must be paid back in monthly payments over the five years. Answer the questions below (round to nearest cent) a. How much do you need to pay each month? $ (Make sure you draw a timeline for this part) b. In the first month, how much of the payments goes towards paying off: i. Principal? $ ii. Interest payments? $ c. How much principal is remaining after the first month? $ d. How much will you pay in interest during the entire second year? $ e. Suppose you want to sell the car after 3 years (36 months). When you sell the car, you must pay off the remaining loan (principal). How much do you still owe? $ (Make sure you draw a timeline for this part)

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