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  3. 5. you are out shopping for a new car. you have fo

5. You are out shopping for a new car. You have found a Toyota Sienna priced...

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Finance

5. You are out shopping for a new car. You have found a ToyotaSienna priced at 34,400. The dealer has told you that if you cancome up with a down payment of 3,300, he would be willing tofinance the balance at an EAR of 5.65%. for 4 years. You come backhome and after doing the math you find that the monthly payment isbeyond your means. At this time, you can only afford a monthlypayment of $661.01. In order to accomplish that, the dealer willhave to offer you a substantially lower APR. So the next day, youtell the dealer that since the demand for Toyotas are substantiallylower at this time due to quality control issues, you can only goahead if the dealer is willing to lower the APR so that the monthlypayment is $661.01. What is the monthly payment that is beyond yourmeans at this time? What should be the APR so that the monthlypayment is $661.01?

A. $1,892.45 AND 1.99%

B. $786.44 AND 5.51%

C. $723.42 AND 0.99%

D. $989.71 AND 3.99%

Answer & Explanation Solved by verified expert
4.1 Ratings (647 Votes)
Amount of loan 31100344003300Monthly payment66101Number of instalments48412APRMonthly    See Answer
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