Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. two years ago abilia purchased a $10,000 car; she

Two years ago Abilia purchased a $10,000 car; she paid $2,000 down and borrowed the...

70.2K

Verified Solution

Question

Finance

Two years ago Abilia purchased a $10,000 car; she paid $2,000 down and borrowed the rest. She took a fixed rate 60-month installment loan at a stated rate of 7.0% per year. Interest rates have fallen during the last two years and she can refinance her car by borrowing the amount she still owes on the car at a new fixed rate of 5% per year for 3 years. Should Abilia refinance her loan? How much will she save per month for the remainder of the loan life if she decides to refinance?

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

Finance
1.2K views

Investor W has the opportunity to invest $615,000 in a new venture. The projected cash flows...

General Management
1.2K views

You are a new Union representative. Draft a memo requesting copies of documents, policies, and procedures...

General Management
1.2K views

Case study Susan Chumley has worked at Suspenders Ltd for six months and has been appointed a...

Biology
1.2K views

collapsing estimating and predicting clustering classifying

Physics
1.2K views

Speed of sound in air at room temperat approximately 343 m s What can be...

Calculus
1.2K views

Find the derivative of the given function R T7e T dR dT

Accounting
1.2K views

MultimediaDat, Inc., reported sales revenue of $375,000, net income of $22,500, and average total assets...

Accounting
1.2K views

Company estimates that 2020 sales will be $42,800 in quarter 1, $52,600 in quarter 2,...

Accounting
1.2K views

all the financial statements is consolidated on the year ended of a business combination for...

Accounting
1.2K views

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer...

Accounting
1.2K views

Please show steps For journal entries in this assignment, enter AR for Accounts Receivable,...

Finance
1.2K views

1. Suppose the risk-free return is 4% and the market portfolio has an expected return...