User Account

All Pages

Monthly car loan payment under the ford

Assignment Help Finance Basics
Reference no: EM131388026

You're looking to buy a car with sunroof and leather seats at a price of $20,500 after applicable cash back incentives. Being a poor college student, you have cash to pay taxes, title, license & fees and need to finance the car's purchase price. You smartly researched your finance options and got pre-approval at a 2.9% APR for 60 months on your own so you're not at the mercy at depending on financing from the car dealership. Ford is offering 0% APR financing for 60 months or an additional $1,000 cash back which would be used as a down payment that reduce that amount that you would need to finance. You would use your 2.9% APR pre- approved financing if you elect the additional $1,000 cash back option. Answer the following questions.

  1. What would be your monthly car loan payment under the Ford's 0% APR financing offer (assume a 60-month loan term)?
  2. What would be your monthly car loan payment under the Ford's $1,000 cash back offer and your 2.9% APR pre-approved financing (assume a 60-month loan term)?
  3. At what APR would you be indifferent between the two offers? In other words, at what APR would you have the same monthly payment (assuming a 60-month loan term) for the $1,000 cash back offer as you would with the 0% APR financing offer?
  4. Construct an amortization schedule the for the loan from #2 for all 60 monthly payments. What would be your loan balance after 3 years (36 payments)?

Reference no: EM131388026

Questions Cloud

Discuss diversity to promote effective learning experiences : NURS6351:Diversity in the educational setting can be a challenge when the educator is not well versed or life exposure has been limited. Taking the time to identify differences in the student populations will help the educator provide the most be..
Should the plaintiff prevail on a cause of action : The pickup was not equipped with a headrest, and none was required at the time. Should the plaintiff prevail on a cause of action based upon strict liability in tort? Why? Why not?
What is the expected total monetary loss : What is the expected total monetary loss under 4% annual interest rate if this park is permanently closed this year
Should she prevail and why : While she was eating, she swallowed a sliver of chicken bone, which became lodged in her throat, causing her serious injury. The plaintiff brings a cause of action. Should she prevail? Why?
Monthly car loan payment under the ford : What would be your monthly car loan payment under the Ford's 0% APR financing offer (assume a 60-month loan term)? What would be your monthly car loan payment under the Ford's $1,000 cash back offer and your 2.9% APR pre-approved financing (assume a..
Which was stolen from his yard : The sale was clearly indicated to be ‘‘as is.'' Two weeks after Ben purchased the mower, the police arrived at his house with Owen Owner, the true owner of the lawn mower, which was stolen from his yard, and reclaimed the mower. What recourse, if ..
Purchase an option to protect yourself : Instead of monitoring the firm, you can also purchase an option to protect yourself. If you were to completely protect yourself against the state of the world where the firm does not pay you back, would you buy a (call or put) option on the final ..
Has giant breached its implied warranty of merchantability : The explosion caused him to lose his balance and fall, with injuries resulting. Has Giant breached its implied warranty of merchantability to Seigel? Why?
Monitor the firm investment decision : Suppose that you can monitor the firms' investment decision and prevent the firm from investing in a project that is too risky. The monitoring costs $50M. You can borrow the $50M at a 10% interest rate and repay the loan plus interest in one year.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the difference in rankings

Explain the difference in rankings. Which investment would you recommend? Rank these investment proposals using the payback period, the accounting rate of return on initial investment, and the net present value criteria.

  Prepare a financial reporting income statement

Prepare a Financial Reporting income Statement(that is, in the form required under GAAP for U.S. external reporting). Determine income in the manner used in cost-volume-profit analysis using equation 2.2 profit=revenue-Variable costs-fixed costs

  Which appears to be more attractive in terms of reacquiring

Compare the price in part A to the 8 percent call premium over par value. Which appears to be more attractive in terms of reacquiring the old bonds?

  Debt to equity ratio

Debt Management Ratios Zoe's Dog Toys, Inc. reported a debt to equity ratio of .90 times at the end of 2008. If the firm's total assets at year-end were $50.4 million, how much of their assets are financed with equity?

  Maximum loan by an employee of a c corporation

Determine the maximum loan taken by an employee of a C corporation.

  Computation of effect of hiring employees

Computation of effect of hiring employees and what should the company do to meet this demand

  What is its risk and which will you select

You have been approached with the idea of selling all the Italian securities, and filling out the remainder of the portfolio with Tasmanian shares, having a return of 21.7% and a deviation of 19.6%. This configuration has a .09 correlation. What i..

  Develop a financing plan to raise capital for a new venture

develop a financing plan to raise capital for a new venture. the 8 to 10 page paper should cover major course concepts.

  What is the future value

What is the future value of $5,000 in 10 years at 5%, compounded monthly?

  Contrast the theories of absolute and comparative advantage

Compare and contrast the theories of absolute and comparative advantage.- How does the Heckscher-Ohlin (HO) theory build on the earlier work of absolute and comparative advantage?

  What is the approximate real rate of your reward for saving

Suppose you postpone consumption and invest at 9% when inflation is 3%. What is the approximate real rate of your reward for saving?

  Performance and budget of marketing department

The company president is reviewing the performance and budget of the marketing department with the vice president of marketing. Should that be a one-on-one meeting, or should the CFO be present? Why? If you feel the CFO should be there, what shoul..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd