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You buy a $1,960,000 car today with $250,000 as a down payment. You decide to...

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Finance

You buy a $1,960,000 car today with $250,000 as a down payment. You decide to finance the remainder of the purchase price with a 60-month loan at 5.6% APR compounded monthly. Three years from now you plan to sell or trade in this car in order to buy a new car. You anticipate the cars resale or trade in value will be $860,000 three years from now, and you plan to use the difference between the trade in value and the remaining loan balance as a down payment for the new car purchase. How large will the down payment be on your planned new car purchase 36 months from now?

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