Purchase CostsDown paymentLoan paymentEstimated value at end of loanOpportunity cost interest rateLeasing Costs$ 1,500$ 690 for 36 months$ 4,3006 percentSecurity depositLease paymentEnd of lease charges$ 1,130$ 1,080$400 for 36 monthsBased on the costs listed in the table above, calculate the costs of buying and of leasing a motor vehicle.Note: Round your answers to the nearest whole number.Buying and LeasingTotal purchase costTotal leasing cost

Down payment = $1500Monthly loan payments = $690Loan value at the end = $4300Monthly lease payments…

Purchase Costs Down payment Loan payment Estimated value at end of loan Opportunity cost interest rate Leasing Costs Security deposit Lease payment End of lease charges $1,500 $ 690 for 36 months $ 4,300 6 percent $ 1,130 $400 for 36 months $1,080 Based on the costs listed in the table above, calculate the costs of buying and of leasing a motor vehicle. Note: Round your answers to the nearest whole number. Buying and Leasing Total purchase cost Total leasing cost

Purchase Costs Down payment Loan payment Estimated value at end of loan Opportunity cost interest rate Leasing Costs Security deposit Lease payment End of lease charges $1,500 $ 690 for 36 months $ 4,300 6 percent $ 1,130 $400 for 36 months $1,080 Based on the costs listed in the table above, calculate the costs of buying and of leasing a motor vehicle. Note: Round your answers to the nearest whole number. Buying and Leasing Total purchase cost Total leasing cost

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 3FPE: Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance...

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Use the following data: Purchase Costs Leasing Costs Down payment: $4,800 Security deposit: $1,600 Loan payment: $1,440 for 48 months Lease payment: $1,440 for 48 months Estimated value at end of loan: $5,100 End-of-lease charges: $765 Opportunity cost interest rate: 2 percent Calculate the costs of buying versus leasing a motor vehicle. Cost of buying $ Cost of leasing $
Purchase Costs Leasing Costs Down payment $ 1,900 Security deposit $ 1,040 Loan payment $ 550 for 36 months Lease payment $ 400 for 36 months Estimated value at end of loan $ 5,000 End of lease charges $ 900 Opportunity cost interest rate 5 percent Based on the costs listed in the table above, calculate the costs of buying and leasing a motor vehicle. (Round your answers to the nearest whole number.) Buying & Leasing Total purchase cost Total leasing cost
Use the loan amortization table: Purchase price of a used car $5,533, Down payment $1,153, number of monthly payments 48, Amount financed $4,380, Total of monthly payments $5,589.76, Total finance charge $1,209.76, APR 13%. What is the monthly payment by table? What is the monthly payment by formula?
Based on the following, calculate the costs of buying versus leasing a motor vehicle. Purchase Costs Leasing Costs Down payment: $1,500 Security deposit: $500 Loan payment: $450 for 48 months Lease payment: $450 for 36 months Estimated value at end of loan: $4,000 End-of-lease charges: $600 Opportunity cost interest rate: 4 percent
Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance part of it through an installment loan. The car you’re looking for has a sticker price of $18,000. Custom Vehicles has offered to sell it to you for $3,000 down and finance the balance with a loan that will require 48 monthly payments of $333.67. However, a competing dealership will sell you the exact same vehicle for $3,500 down, plus a 60-month loan for the balance, with monthly payments of $265.02. Which of these two financing packages is the better deal?
Answer the following problems. write your computation. 1. A 21 cu ft refrigerator is priced at ₱46,795. The seller is willing to give it in installmemt for 2 year term at 8% interest for a 15% down payment. a. prepare manually youre amortization schedule for the first year of the loan.
Question content area top Part 1 Compute the monthly payments for a vehicle that costs $14 comma 10014,100 if you financed the entire purchase over 44 years at an annual interest rate of 6.256.25 percent. Also, calculate the loan payments assuming rates of 5.255.25 percent and 7.257.25 percent. Compare the total amount spent on the vehicle under each assumption. Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING... . Question content area bottom Part 1 The monthly payments for a vehicle that costs $14 comma 10014,100 if you financed the entire purchase over 44 years at an annual interest rate of 6.256.25% is $332.76332.76. (Round to the nearest cent.) Part 2 The total amount spent on the vehicle if financed for 44 years at an annual rate of 6.256.25% is $15972.4815972.48. (Round to the nearest cent.) Part 3 The monthly payments for a…
Complete the following table: Purchase price of product Landcruiser Down payment Amount financed Number of monthly payments Amount of monthly payments Total of monthly payments Total finance charge $70,900 $49,500 $72 $488
How do I work out this problem? Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) (Round your answers to the nearest cent.) Purchase priceof a used car Downpayment Number ofmonthly payments Amountfinanced Total of monthlypayments Total financecharge APR $4,015 $90 60 $3,925 $5,764.00 $1,839.00 15.5%
The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n ) P = monthly payment I = initial loan amount borrowed r = monthly interest rate n = number of months to pay off the loan 5. Assume you decide to take a 5-year car loan, with a 3.25% APR paid monthly. Insert the numbers you have so far into the formula above and simplify as much as possible. Show any in-between steps you do. (Note: simplify means to calculate the parts of the equation that you can so far.) 6. Use your simplified formula from above to answer: What is the largest amount you can borrow for the car if you can afford a $350/month payment? Show work.
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.). (Use 13% for table lookup.). (Use the loan amortization table) (Round your answers to the nearest cent.) Purchase priceof a used car Downpayment Number ofmonthly payments Amountfinanced Total of monthlypayments Total financecharge APR $5,673 $1,223 48 $ 4,450 $5,729.76 $1,279.76 13% Monthly Payment By table By formula
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table.) Note: Round your answers to the nearest cent. Purchase price of a used car Down payment Number of monthly payments Amount financed Total of monthly payments Total finance charge APR $4,255 $95 60 $4,160 $6,004.00 $1,844.00 15.5% Monthly payment by table by formula TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8.00% 8.50% 9.00% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 6 $ 170.34 $ 170.58 $ 170.83 $ 171.20 $ 171.56 $ 171.81 $ 172.05 $ 172.30 $ 172.55 $ 172.80 $ 173.04 $ 173.29 $ 173.54 $ 173.79 $ 174.03 $ 174.28 $ 174.53 12 86.76 86.99 87.22 87.46 87.92 88.15 88.38 88.62 88.85 89.08 89.32 89.55 89.79 90.02 90.26 90.49…