Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Suppose that you have decided you require a new car, however not any car will do; you have decided to purchase the car of your dreams. Conduct some research as to the cost of this car. You have found out in this imagined scenario which you could afford to make a 10% down payment. You can borrow the balance either from your local bank by using a four-year loan or from the dealership's finance company. If you purchase from your dealership's finance company, the APR will be 10% with your 10% down and monthly payments over three years. Though, the dealership will give you a rebate of 5% of the car price after the three year term is complete. You want the best deal possible, so you consider the given problems:

a) What kind of car have you selected, and what will it cost?

b) What is the interest rate from your local bank for a car loan for four years?

c) What will your payment be to your local bank, supposing your 10% down payment? Be sure to use the formula and show your work. How much will that car have cost in 4-years?

d) What will your payment be to the dealership finance company supposing your 10% down payment? Be sure to use the formula and show your work. How much will that car have cost in 3 years?

e) Which is the better deal and describe why?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M923597

Have any Question? 


Related Questions in Basic Finance

Use secondary sources to write a report about female

Use secondary sources to write a report about female leaders in business. 2020 Women on Boards is an organization dedicated to raising the percentage of women on corporate boards to at least 20% by the year 2020. As part ...

Mm proposition i with taxesthe maxwell company is financed

MM Proposition I with Taxes The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.72 million. The loan will be repaid in equal installments over the next two years, and it has an i ...

A company has 1 00000 to invest in new rampd projects the

A company has $1, 00,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.   The following table summarizes the initial cost and revenue potential for each of the proj ...

What precautions must one take when using ratio analysis to

What precautions must one take when using ratio analysis to make financial decisions? Which ratios would be most useful for a financial manager's internal financial analysis? For an analyst trying to decide which stocks ...

A presale agreement is said to be equivalent to a take-out

A presale agreement is said to be equivalent to a take-out commitment. What will the construction lender be concerned about if the developer plans to use such an agreement in lieu of a take-out? Why don't permanent lende ...

The potential revenues of all projects are in fact

The potential revenues of all projects are in fact uncertain. The company determines that the revenue for project 1 is following a uniform distribution ranging from $1,200,000 to $2,000,000. The revenue for project 2 is ...

A researcher has a sample of 30 rats that are all cloned

A researcher has a sample of 30 rats that are all cloned from the same source. The 30 rats are genetically identical and have been raised in exactly the same environment since birth. The researcher conducts an experiment ...

In a survey of 2695 adults 1479 say they have started

In a survey of 2695 adults, 1479 say they have started paying bills online in the last year. Construct a 99% confidence interval for the population proportion. Interpret the results. A 99% confidence interval for the pop ...

1 what is a forward transaction what is a forward contract2

1. What is a forward transaction? What is a forward contract? 2. What is the spot price? What is the settlement date? 3. An opinion column in the Wall Street Journal observes: "Speculators earn a profit by absorbing risk ...

Assignment - financial research report amanda todds

Assignment - Financial Research Report Amanda Todd's Story Watch the video titled "Amanda Todd's Story: Struggling, Bullying, Suicidal, Self-harm" (8 min 55 s). Video Source: ChisVideos. (2012, October 11). Amanda Todd's ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen