1. You wish to buy a $22,500 car. The dealer offers you a 4-year loan with a 10 percent APR. What are the monthly payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Payment $ per month
How would the payment differ if you paid interest only? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Payment $ per month
2. You wish to buy a $10,500 dining room set. The furniture store offers you a 2-year loan with an 10 percent APR. What are the monthly payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Payment $ per month
How would the payment differ if you paid interest only? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Payment $ per month
3. You are looking to buy a car. You can afford $660 in monthly payments for five years. In addition to the loan, you can make a $760 down payment. If interest rates are 8.25 percent APR, what price of car can you afford? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value $