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, show excel formulas if possible]

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

Geometry
1.2K views

Savannah is flying a kite holding her hands a distance of 2 5 feet above...

Basic Math
1.2K views

Find the maximum and minimum of the function f(x, y, z) = (x^2)(y^2)z in the region...

Civil Engineering
1.2K views

Why is it important for engineers to consider the environment in their projects?

Accounting
1.2K views

discretionary fixed cost

Physics
1.2K views

3 A reversible cyclic heat engine absorbs 900 joule of heat from source If 400...

Physics
1.2K views

If Cp and Cydenoted the specific heat of unit gram mass of nitrogen at constant...

Basic Math
1.2K views

The following is an excerpt from a press release on the AFL-CIO website published in...

Statistics
1.2K views

K uestion Find the z score for the value 90 when the mean is 59...

Calculus
1.2K views

One of the events at field day was the long jump. The lengths of 20...

Algebra
1.2K views

Solve tan(x)=-?5 on 0?x<2?There are two solutions, A and B, with A

Accounting
1.2K views

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $315,000, total variable...

Accounting
1.2K views

a. On July 1 Lopez Company paid $3,000 for six months of insurance coverage. No...