Interest and Loan Calculations
For thisAssignment you will write an essay to address the requirements described below.Your essay must be carefully planned and written using well-constructedsentences and paragraphs. Make sure that your grammar and spelling are correct.Points will be awarded for content as well as composition. Your essay must be aminimum of 1 page in length with standard 1 inch margins and is required tohave at least one reference from a reliable source. This means that you cannotuse sites like Wikipedia, Ask.com®, and Yahoo® answers and that only referencesfrom reliable sources will earn points. All resources should be cited both asan in-text citation as well as being listed on a reference page in APA format.
Essay Assignment
Your Assignmentis to write an essay discussing the financing of a new car for your business.
The price ofthe used car is $20,000. Sales tax on this car is 8.4% of the price of thevehicle. You intend to finance the entire cost of the car and sales tax, less adown payment of $1,500. You intend to finance the car for 48 months and yourcar payment will be $455.12 per month.
Your essayshould in include the following information
1. Calculate and discuss the amount financed, theinstallment price of the new car, and the finance charges you will pay over thelife of the loan.
2. Compare and contrast the advantage of payingcash and financing the vehicle over a shorter period of time, as well as, theimpact of finding lower interest rates.
3. Research and discuss the advantages of havinggood credit versus poor credit when qualifying for a loan. Discuss theimplications of your credit score on the interest rates you may qualify for.
Your essay should be complete and cover eachpoint as outlined above. Be sure to include at least one text citation.