SOLUTION: Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and financed the balance with a 60-month fixed installment loan with an APR of 5.0%.
a. Determine
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Question 1119747: Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and financed the balance with a 60-month fixed installment loan with an APR of 5.0%.
a. Determine the down payment.
b. Determine the amount financed
c. Determine the finance charge
d. Determine the monthly payment
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
best to use a financial calculator for this.
i use https://arachnoid.com/finance/>
down payment is 30% of 26,000 = 7,800.
what is being financed is 26,000 - 7,800 = 18,200.
payments are made at the end of each month for 60 months.
apr is 5% per year / 12 = .416667% per month.
present value is 18200.
future value is 0.
put these inputs in the calculator and solve for payment amount.
you will get 343.46 needs to be paid at the end of each month.
results of using the online calculator are shown below:
answers to your questions:
a. Determine the down payment.
down payment is 30% of 26,000 = 7,800.
b. Determine the amount financed
amount financed is 26,000 minus 7,800 = 18,200.
c. Determine the finance charge
finance charge is 5% / 12 = .416666...% per momth.
d. Determine the monthly payment
monthly payment is $343.46 per month.
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