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?
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.
posted by Henry
Okay I understand the first two but not the last couple ones from c-e. Im not coming up with the same thing.posted by Tyreice