Dean is planning to purchase a car for $28,560. He has 12% to put down and...

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Finance

Dean is planning to purchase a car for $28,560. He has 12% toput down and can finance the remainder for 5 years.   Hecan get a loan at 2.14% APR.
Since Dean has the down payment amount already, if he puts thatin a money market savings account with the APR of 3.5% what amountwould he have to deposit each month to have the full $28,560 costof the car so he could pay cash for it in fiveyears?

If Dean saves up to pay cash for his car (as calculated inquestion #6) instead of financing it what will be thetotal that he has to deposit into the savingsaccount to accumulate the cost of the car?

How much less will Dean pay for the car if he saves up to paycash for his car instead of financing it?

Answer & Explanation Solved by verified expert

3.6 Ratings (277 Votes)

APR is 35 so EAREffective Annual Return135121213557 monthly rate351202917tenure51260 monthsHe has 2856012 or 342720 and if See Answer

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Transcribed Image Text

Dean is planning to purchase a car for $28,560. He has 12% toput down and can finance the remainder for 5 years. Hecan get a loan at 2.14% APR.Since Dean has the down payment amount already, if he puts thatin a money market savings account with the APR of 3.5% what amountwould he have to deposit each month to have the full $28,560 costof the car so he could pay cash for it in fiveyears? If Dean saves up to pay cash for his car (as calculated inquestion #6) instead of financing it what will be thetotal that he has to deposit into the savingsaccount to accumulate the cost of the car? How much less will Dean pay for the car if he saves up to paycash for his car instead of financing it?