{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Study Problem Sparky solution

Study Problem Sparky solution - ($5,301.61 Loan Balance...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam Study Problem sees your UA emblem and offers you the deal of the decade. There is zero down and the payments are only $476.80 for 72 months at an interest rate of 4.12% APR compounded monthly. $24,000 Purchase Price $476.80 Monthly Payment 4.12% APR compounded monthly 5.5 years into the loan 0.343% Effective rate per month 66 Number of months in 5.5 years $5,159.71 Balance in 66 months The sign is POSITIVE which means you overpaid the loan and Sparky OWES you $5,159.71!!! ($23,605.60) Loan Balance after 1 month
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ($5,301.61) Loan Balance after 44 months 55.36 Number of months to pay off loan This should have been the payment per month ($376.80) Sun Devil Auto Finance has a car you really like for $24,000. Sparky Salesman Ever wary, you ask about the terms. Sparky says: He offers a further sweetener: At the end of 5.5 years Sun Devil Auto will forgive the remainder of your loan balance which Sparky calculates will be $5,159.71 A. Is Sparky's deal proof that some Sun Devils are fair business people?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online