1.PV and loan eligibility You have saved $4,000 for a down payment on a new...
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1.PV and loan eligibility You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 8% APR based on end-of-month payments.
A.What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $
B.What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $
a. Complete an amortization schedule for a $50,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 8% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Balance Payment nterest eal ala s s s s s s s s s s s b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round a answers to two decimal places Interest Principal 30% Year 1: Year 2: Year 3: c. Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance increases. IV. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance increases. V. These percentages do not change over time. interest and principal are each a constant percentage of the total payment
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8% APR based on end-of-month payments.