Question: You are buying a $ 3 0 , 0 0 0 car from your dealership. You are initially offered 1 2 % APR with 6

You are buying a $30,000 car from your dealership. You are initially offered 12% APR with 600 FICO score for your $30,000 auto loan over 5-year period. Your monthly payment is $667.33.Then, when you are trying to make your final contract to buy your car in your dealership. Senior manager comes to you and says that if you purchase 5-year service warrant which costs you $5,000, they will offer you 3% APR for 5-year loan period. Your monthly payment is $628.90.Should you accept this offer? If so, why? If not, why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Allen Moving and Storage prepared the following income statement for 2 0 1 8 : CHECK FIGURE ( 2 ) Break - even sales = $ 4 , 8 3 8 , 4 8 5 Revenues: Local: $ 1 , 4 3 3 , 5 0 0 Intra - province: $ 5 1...

Q:

Financial Literacy Final Instructions: You've learned about many different financial topics this year. It's time to reflect on a few of these topics and practice giving some advice to friends and...

Q:

Financial Literacy Final Instructions: You've learned about many different financial topics this year. It's time to reflect on a few of these topics and practice giving some advice to friends and...

Q:

You are buying a $ 3 0 , 0 0 0 car from your dealership. You are initially offered 1 2 % APR with 6 0 0 FICO score for your $ 3 0 , 0 0 0 auto loan over 5 - year period. Your monthly payment is $ 6 6...

Q:

ou are buying a $ 3 0 , 0 0 0 car from your dealership. You are initially offered 1 2 % APR with 6 0 0 FICO score for your $ 3 0 , 0 0 0 auto loan over 5 - year period. Your monthly payment is $ 6 6...

Q:

The blake car dealership would like you to build a car purchase and financing model. They have created a basic format as shown in the car finance spreadsheet. Variable Inputs include base price,...

Q:

1. Analyze the financial and operational risks of Tesla and compare with its peers. 2. Carry out year on year change analysis and try to forecast Net Income to Q2 2021. I leave this to you to either...

Q:

FILE TOOLS VIEW 6401819_1_writing-case--4 - Word (Product Activation Failed) Financing Early Operations Musk's first entrepreneurial venture was to join up with his brother, Kimbal, and establish...

Q:

Can anyone help me with this or already have the solution this whole Finance Workbook for Madura Personal Finance, Third Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX Chapter...

Q:

X y rephrase X Spatial D x t/PlayerHomework.aspx?homeworkId=654059490&questionId=1&flushed=false& Question 1, Problem 4-31 (algorithmic) Part 1 of 3 > thly payments on the 12% loan will be $ (Round...

Q:

Bob & Betty Homebuyers will make an offer on 4980 Catoctin at a price of $565,000. They have savings of $130,000 to use for down payment and closing costs. If their office is accepted, they plan to...

Q:

Write a program that defines three integer variables, var1, var2, and var3, & initializing them to the values 100, 200 & 300, it then prints out their addresses. (write a program in C++...

Q:

You purchase a dwelling for R1 500 000 and finance the purchase by way of a 100% mortgage bond. The interest rate on the mortgage bond is 11% per year and the bond period is 20 years. What is the...

Q:

ctions - Google Chrome PlayerHomeworkaspx?homeworkld = 6 9 9 0 5 0 0 1 4 8 questionld = 1 8 flushed: 5 - Precalculus arithmic Functions Use the properties of logarithms to rewrite the following...

Q:

List the pressures that lean systems pose for supply chains, whether in the form of process failures due to inventory shortages or labor stoppages, etc. Reflect on how these pressures may apply to a...

Q:

Compare and contrast the following two situations: a. A companys lean system stresses teamwork. Employees feel more involved and, therefore, productivity and quality increase at the company. The...

Q:

Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys. Inc., and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of...

Q:

An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits by center 2. Each Unit of the end item, called a jit-together, requires 3 gadjits and 2...

Q:

Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The companys balance sheet as of June 30 is shown below: Colerains managers have...

Q:

Telsa Inc, Competive Advantage

Q:

3.83 A publisher sends advertising materials for an accounting text to 80% of all professors teaching the appropriate accounting course. Thirty percent of the professors who received this material...

Q:

3.82 Given P1A12 = 0.60, P1B1 uA12 = 0.60, and P1B1 uA22 = 0.40, what is the probability of P1A1 uB12?

Q:

3.81 Given P1A12 = 0.40, P1B1 uA12 = 0.60, and P1B1 uA22 = 0.70, what is the probability of P1A2 uB22?