After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing through the dealer is no bargain. He has $2,100 cash for a down payment, so he needs an $8,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,400 for a period of two years at an add-on interest rate of 10 percent.
a) What is the total interest on Richard's loan?
b) What is the total cost of the car?
c) What is the monthly payment?
d) What is the annual percentage rate (APR) ?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing through the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Identifying problems, alternatives and resources are all examples of the transferable skill of? A) Communication B) Human Relations C) Organization, Managment, and Leadership D) Research and Planning
Answers (1)
Wilson company paid $4,800 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date.
Answers (1)
The Baldwin company wants to decrease its plant utilization for Bold by 15%. How many units would need to be produced next year to meet this production goal? Ignore impact of accounts payable on plant utilization.
Answers (1)
Johnson works in a retail store and updates all the sales records by the end of the day. He needs to send the weekly sales report to his supervisor.
Answers (1)
Ruby's health food store markets to people wanting to improve their overall health which of the following groups is Ruby focusing on A. Target market B. Market penetration C. market research D. market segment
Answers (1)
New Questions in Business
Suppose your starting salary is $70,000 per year. You deposit 10% each year in a savings account that earns 6% interest. Your salary increases by 5% per year, and inflation is 3% per year.
Answers (1)
Demand for devil's food whipped-cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean of six per day. The manager estimates it costs $9 to prepare each cake. Fresh cakes sell for $12.
Answers (1)
Place in order the events in the evolution of the Solow growth model. Start by clicking the first item in the sequence or dragging it here The Solow growth model was developed in 1956.
Answers (1)
Read the following except from a warranty. What time period is this warranty for? "This warranty is given by XYZ motors. The Zoom car is guaranteed to be free of defects for 30,000 miles or three years, whichever is reached first.
Answers (1)
Orange Corporation is developing standards for its products. Product A requires a material that is purchased for $80.00 per pound from the supplier. By paying cash, the company gets a discount of 3% off this purchase price.
Answers (1)