Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).
A car with a sticker price of $42,250 with factory and dealer rebates of $5,100
(a) Find the monthly payment if financed for 60 months at 0% APR.
I find it hard to see why this is difficult.
Since there is no interest
Just subtract the rebate, then divide that answer by 60.
george makes a $1000 down payment for a care and then pays $325 per month. Elaine makes a $2500 down payment for a car and then pays $325 per month. is there any number of month after which both george and elaine will have to paid the same amount
To calculate the monthly payment for financing a car, we can use the formula for a fixed-rate loan. However, in this case, the car is being financed with 0% APR, which means there is no interest to be paid on the loan. Therefore, the monthly payment will only include the principal amount being borrowed.
To find the monthly payment, we need to subtract the rebate from the sticker price to determine the loan amount. In this case, the sticker price is $42,250 and the rebates amount to $5,100. So, the loan amount would be $42,250 - $5,100 = $37,150.
Since the loan amount is being financed for 60 months, we can divide the loan amount by the number of months to find the monthly payment. Thus, the monthly payment would be $37,150 / 60 = $619.17.
Therefore, the monthly payment for financing the car for 60 months at 0% APR would be $619.17.