cons30s vehicles - loans
TRANSCRIPT
TAKING OUT A LOAN TO PURCHASE A VEHICLE
A common way to purchase a vehicle it to take out a loan from a bank.
Some people put a down payment on the cost of the vehicle, and then borrow the rest.
EX You want to take out a loan for $17,500 to buy a vehicle. Your monthly payment is $405 for a fouryear loan.
a) What is your TOTAL amount paid?
b) What is the FINANCE (interest) charge?
EX You make a down payment of $4,500 on a new car, which you bought for $24,605. To finance the rest of the cost, you take out a threeyear loan at a fixed interest rate of 7.75%.
a) What is the principle of the loan?
b) Find the monthly payment. (pg.59)
EX You make a down payment of $4,500 on a new car, which you bought for $24,605. To finance the rest of the cost, you take out a threeyear loan at a fixed interest rate of 7.75%.
c) Find the total paid for the loan.
d) What is the finance charge?
EX You make a down payment of $4,500 on a new car, which you bought for $24,605. To finance the rest of the cost, you take out a threeyear loan at a fixed interest rate of 7.75%.
e) Find the total cost of the vehicle, including her own down payment.
HOMEWORKpg.182; #18