AF301: Introduction to Financial Management Group Quiz Annuities You are thinkin

Question

AF301: Introduction to Financial Management Group Quiz Annuities You are thinking about buying a car and have found a Toyota Prius which will cost you a total of $24,200 You will put $2,000 down. You plan to take out a 5 year loan. The following are the interest rates on car loans for 3 different credit rating levels: Excellent Good Poor Score Range 720 650-669 610-629 Interest Rate 5.3% 11% 16.2% 1. Whas are your monthly payments based on each of the credit rating levels? Suppose that you can only afford to make payments of $350 per month. Based on each of the credit levels, calculate the total amount that you will be able to borrow given your maximum payment of $350 per month. 3. How much total interest will you have paid under each of the credit rating scenarios?

Explanation / Answer

1. For 5.30% EMI would be $ 422, for 11% 483, for 16.20% EMI would be $ 543

2. For 5.30% loan amount could be $ 18400, for 11% 16075 and for 16.20% $ 14300

3. For 5.30% interest payable would be $ 3120, for 11% $ 6761 and for 16.20% $ 10333

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.