NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

4.8/5

solution

Mark wants to upgrade his car even though his financial situation is not great, he feels a he want to purchase a used vehicle for $39,000. He still owes $10,000 on his current vehicle, but the dealership has offered him $14,000 in trade in value. The dealership would pay out his $10,000 loan on his behalf and use the remaining $4,000 as a down payment on the new vehicle. Mark will finance the difference (including the 12% tax). The dealership has provided two options to purchase the new vehicle:

1. A monthly loan for 5 years at 6% annually.

2. A 4-year lease at 7% annually with monthly payments of $390. Residual value owing at the end of the 4 year lease of $12,000.

Mark knows the new vehicle will obviously cost more per month then his previous, but he says that he ease the increased payments by changing his auto insurance to basic coverage. He’s not completely sure about the difference in the two plans because he didn’t do any research but he is happy because it will save him $75 every month.

a) Calculate the amount owing on the new vehicle. What would be the monthly payment on the loan option (5 years at 6%). Also prepare the first four months of the loan amortization schedule.

b) What would you recommended to Mark about purchasing this new vehicle that he wishes to have? (Please give a multiple sentence answer, thank you very much)

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!