This preview shows page 1. Sign up to view the full content.
Unformatted text preview: per year. If AMT has a discount/interest rate of .008% per month, how many months must the diesel trucks remain in service for the switch to diesel trucks to be sensible. 4. Your company needs to purchase a car for one of its sales staff. The dealer offers to finance the entire $35,000 purchase price over 72 months with the first monthly payment due one month after the purchase. a.What monthly payment would you expect the company to make assuming the dealer offers an annual interest rate of 3.6% (.003% per month)? b. What is the total amount of interest paid over the 72 months? c.What would be the payment per month and the total interest if the interest rate rises to 4.8% per month (.004% per month)? d. What would be the monthly payment and the total interest rate if the car is financed over 60 months at 3.6% (.003% per month)?...
View
Full
Document
This note was uploaded on 01/31/2011 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue.
 Spring '08
 Staff

Click to edit the document details