Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you agree to purchase a car for $3,000(paid today)

You agree to purchase a car for $3,000(paid today) plus a loan in the amount...

60.1K

Verified Solution

Question

Finance

You agree to purchase a car for $3,000(paid today) plus a loan in the amount of $35,000 payable over 48 months at a contractual rate of interest of 5%. Your payments will be due monthly, at the end of the month. The competitive price of the car is $36,500 and your personal competitive market rate of interest (for the risks you pose as a borrower) is 6%.
How much value did you destroy in the transaction? (In other words, by how much did you overpay?)[Show your answer in dollars and cents; do not round interim calculations; if you come up with a negative amount, show with a minus sign]

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

Mechanical Engineering
1.2K views

At mechanics of metal cutting, I cannot understand the reason why the shear angle is smaller when...

Physics
1.2K views

The linear density of a vibrating string is 1 5x10 kg m The equation of...

Geometry
1.2K views

Calvin received bimonthly paychecks of 2007 25 last year If 17 1 of his yearly...

Basic Math
1.2K views

Specify the set by description 1 9 81 729 6561 O multiples of 9 O...

Basic Math
1.2K views

Set up the simplex matrix used to solve the linear programming problem Assume all variables...

Basic Math
1.2K views

Sketch the graph of the quadratic function.f(x) = 3x + 2Indicate the coordinates of the...

Algebra
1.2K views

Find the real numbers that satisfy the equation below Express your answer in set builder...

Accounting
1.2K views

! Required information [The following information applies to the questions displayed below.] ...

Accounting
1.2K views

These are two independent situations: 1. Ivanhoe Cosmetics acquired 13% of the 275,500 shares of...

Finance
1.2K views

What does the term 'EBITDA' stand for in financial analysis? Earnings before interest, tax, depreciation,...

Finance
1.2K views

Answer format currecye Round to 2 derinal plooes. a mude 7.00 yous toin today and...

Accounting
1.2K views

Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts...