Financing a Car Answers

Terry has just purchased a new car, which had a list price of $16,825. She had to pay 7.19% sales tax, a $1,128 vehicle registration fee, and a $190 documentation fee. Terry traded in her previous vehicle, a 2003 Honda Element in good condition to use as a downpayment. The dealer paid full price for her trade in. She financed the rest of the cost over five years at an interest rate of 10.59%, compounded monthly. What is her monthly payment? (Round all dollar values to the nearest cent.) Honda Cars in Good Condition Model/Year 2000 2001 2002 2003 Element $5,887 $6,080 $6,225 $6,622 Odyssey $8,450 $8,693 $8,928 $9,224 Insight $4,384 $4,661 $5,006 $5,440 Accord $6,356 $6,626 $6,817 $7,114 a. $416.83 b. $190.00 c. $218.16 d. $274.20 Please select the best answer from the choices provided

The following table shows a portion of a three-year amortization schedule. Use the information in the table to decide which of the following statements is true. a. The payment amount changes each month. b. The amount applied to the principal is decreasing each month. c. The amount applied to the principal is increasing each month. d. The amount applied to interest is increasing each month. Please select the best answer from the choices provided

Laura is currently paying off her four-year car financing. When she purchased her car, it had a list price of $19,858. Laura traded in her previous car, a good-condition 2000 Honda Insight, for 85% of the trade-in value listed below, financing the rest of the cost at 9.5% interest, compounded monthly. She also had to pay 9.27% sales tax, a $988 vehicle registration fee, and a $77 documentation fee. However, because Laura wants to pay off her loan more quickly, she makes a total payment of $550 every month. How much extra is she paying monthly? Round all dollar values to the nearest cent.Honda Cars in Good ConditionModel/Year2000200120022003Element$5,887$6,080$6,225$6,622Odyssey$8,450$8,693$8,928$9,224Insight$4,384$4,661$5,006$5,440Accord$6,356$6,626$6,817$7,114a.$73.81b.$71.72c.$88.24d.$77.92

The following table shows a portion of a five-year amortization schedule. What percent of the payments made were due to interest for the months shown? a. 30.9% b. 32.6% c. 62.5% d. 63.4% Please select the best answer from the choices provided

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Dodge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12.28%, compounded monthly. Charles will also be responsible for 6.88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid.) Dodge Cars in Good ConditionModel/Year20042005200620072008Viper$7,068$7,225$7,626$7,901$8,116Neon$6,591$6,777$6,822$7,191$7,440Intrepid$8,285$8,579$8,699$9,030$9,121Dakota$7,578$7,763$7,945$8,313$8,581a.17.64%b.15.67%c.16.70%d.12.86%

Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment?a.$446.74b.$459.42c.$461.41d.$507.09

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg’s financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent. (Note: The sales tax is applied to the full list price of the car as there is no trade-in or discount) a. $2,000 b. $2,200 c. $2,500 d. $2,800 Please select the best answer from the choices provided

When purchasing her new car, Molly traded in her previous car, which was a Buick in good condition. The dealer offered her 80% of the listed trade-in value for her car, giving her a total of $1,340.80. What was Molly’s previous car?Buick Cars in Good ConditionModel/Year19981999200020012002Century$929$1,086$1,150$1,488$1,595LeSabre$2,075$2,282$2,690$2,935$3,374Regal$1,676$1,794$2,030$2,214$2,566Riviera$1,291$1,455$1,520$1,814$1,959a.1999 LeSabreb.2002 Centuryc.2001 Rivierad.1998 Regal

Tyler is planning to buy a new car. He intends to trade in his existing car, a 2002 Chrysler Sebring in good condition. Using the table below, estimate how much Tyler’s car is worth.Chrysler Cars in Good ConditionModel/Year20002001200220032004Pacifica$2,194$2,288$2,605$2,690$2,814Concorde$1,842$1,998$2,180$2,781$2,925Sebring$2,920$3,075$3,260$3,551$3,912300M$2,770$2,934$3,095$3,188$3,676a.$3,260b.$2,920c.$2,605d.$3,188

The following table shows the first two years of a three-year amortization schedule. Use the information in the table to decide which of the following statements is true. a. The interest amount increases each month. b. The principal amount decreases each month. c. The payment amount changes each month. d. The payment amount each month stays the same. Please select the best answer from the choices provided