Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. to travel to his new job, hassan is shopping for a

To travel to his new job, Hassan is shopping for a new vehicle, and has...

90.2K

Verified Solution

Question

Finance

To travel to his new job, Hassan is shopping for a new vehicle, and has noticed that many vehicle manufacturers are offering special deals to sell off the current year's vehicles before the models arrive. Hassan's local Ford dealership is advertising 3.9% financing for a full 48 months (i.e., 3.9% compounded monthly) or up to $4000 cash back on selected vehicles. The vehicle that Hassan wants to purchase costs $24,600 including taxes, delivery, licence, and dealer preparation. This vehicle qualifies for $1800 cash back if Hassan pays cash for the vehicle. Hassan has a good credit rating and knows that he could arrange a vehicle loan at his bank for the full price of any vehicle he chooses. His other option is to take the dealer financing offered at 3.9% for 48 months.

Hassan wants to know which option requires the lower monthly payment.

4. Suppose Hassan buys the vehicle on January 1. What monthly payment must Hassan make if he chooses the dealer's 3.9% financing option and pays off the loan over 48 months? (Assume he makes each monthly payment at the end of the month and his first payment is due on January 31.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students