The price of the
used car is $20,000. Sales tax on this car is 8.4% of the price of the vehicle.
You intend to finance the entire cost of the car and sales tax, less a down
payment of $1,500. You intend to finance the car for 48 months and your car
payment will be $455.12 per month.
Calculate and discuss the amount financed, the
installment price of the new car, and the finance charges you will pay over the
life of the loan.
The vehicle is financed at $20,000.00. Compare and contrast the advantage of paying
cash and financing the vehicle over a shorter period of time, as well as, the
impact of finding lower interest rates.
I think I am overwhelmed by this problem because there is so much going on in the problem itself…I do not know where to start.