dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000 for a down payment and you will finance the rest. i) What is the total cost of the car, including HST only. ii) Calculate your monthly payment. Be sure to show what values you use for the TVM solver.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A local car dealership is selling a new compact car for $18 995 plus HST. The
dealership offers financing at 4.9% annual interest, compounded monthly for 5
years. You have $4000 for a down payment and you will finance the rest.
i) What is the total cost of the car, including HST only.
ii) Calculate your monthly payment. Be sure to show what values you use for the
TVM solver.
Transcribed Image Text:A local car dealership is selling a new compact car for $18 995 plus HST. The dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000 for a down payment and you will finance the rest. i) What is the total cost of the car, including HST only. ii) Calculate your monthly payment. Be sure to show what values you use for the TVM solver.
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