Samantha is going to buy a new Dodge Saturn for $20800. After a 5% down-payment the dealership will offer a loan for the remaining value of the car at 3.25% APR for 4 years.
Round all answers to the nearest penny. Use Web Loan Calculator to find some of the answers here.
How much will Samantha have to have for a down-payment?
$
How much money is Samantha going to borrow for the car?
$
How much will Samantha have to pay per month for 4 years?
$
per month
How much will Samantha actually pay for the car?
Don't forget the Down Payment.
$
How much of this last answer is the interest payed on this loan?
$
a. D.P. = 0.05 * 20,800 = $1,040.
b. Po = 20,800 - 1040 = $19,760 = Amt. borrowed.
c. P = Po*r*t/(1-(1+r)^-t).
r = 0.0325/12 = 0.0027/mo.
t = 4yrs. * 12mo./yr. = 48 mo.
P = (19,760*0.0027*48)/(1-1.0027^-48) = $21,034.03.
21,034.03/48mo. = $438.21/mo.
d. $21,034.03 + 1040 = $22074.03 = Total cost.
e. I = P-Po.
Okay I understand the first two but not the last couple ones from c-e. Im not coming up with the same thing.
To calculate the down payment, you need to multiply the purchase price of the car ($20,800) by the down payment percentage (5%). So, the down payment amount will be $20,800 * 0.05 = $1,040.
To determine how much Samantha is going to borrow for the car, you need to subtract the down payment amount from the purchase price of the car. So, the loan amount will be $20,800 - $1,040 = $19,760.
To find out how much Samantha will have to pay per month for 4 years, you can use a loan calculator. Go to a web loan calculator and enter the loan amount ($19,760), the loan term (4 years), and the annual interest rate (3.25%). The calculator will provide you with the monthly payment amount. Make sure to round the answer to the nearest penny.
To calculate the total amount Samantha actually pays for the car, you need to add the down payment amount to the loan amount. So, the total cost of the car will be $1,040 + $19,760 = $20,800.
To determine how much of this total cost is the interest paid on the loan, you can subtract the loan amount from the total cost of the car. So, the interest paid on this loan will be $20,800 - $19,760 = $1,040.
Please note that to get exact and more accurate answers, you should use a web loan calculator that provides comprehensive calculations.