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You are here: HomeCase StudyLiterature & Language
Pages:
2 pages/≈1100 words
Sources:
6 Sources
Level:
APA
Subject:
Literature & Language
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 14.4
Topic:

Sample of Car Financing Computation (Case Study Sample)

Instructions:

car finacing, use any source to complete the assignment.

source..
Content:

1 Price the vehicle and its options.
Car to Purchase: A new 2021 Harley-Davidson 4 Wheel
The base price $10,000.
The down payment is $2,000.
With a 14% interest rate, the total payment with interest rate.
$ 8000 X (1.14)2 = $ 10,396.8 in two years
The total value = $ 10,396.8 + $ 2,000 = $ 12,396.8
The interest is $ 10,396.8 -$ 8,000 = $ 2,396.8 in two years
If the Car payment is on a 4-year plan, the total value will be
$2,000 + $8,000 X (1.14)4 = $15,511.68
With the interest value = $ 5,511.68
2 Find two loans (different companies) with the best rates, but with different terms
* Bank of America auto loans
For the loan provider, the repayment time is 24 months
The Loan amount is $10,000
The Interest rate is 12% per annum
The payment period is 24 months
The total amount paid at the end of the term is
$10,000 X (1.12)2 = $12,544
* Light Stream
For the loan provider, the repayment time is 24 months
The Loan amount to be financed is 80% of the total i.e. $8,000
The Interest rate is 11.89% per annum
The payment period is 24 months
The total amount paid at the end of the term is
$8,000 X (1.1189)2 = $ 10,015.50
If you pay $2,000 to the car dealer, the car will cost
$ 10,015.50 + $ 2,000 = $ 12,015.50
3 For each loan, calculate the monthly payments and total interest.
For Bank of America auto loans. The loan provider, the repayment time is 24 months
The Loan amount is $10,000
The Interest rate is 12% per annum
The payment period is 24 months
The total amount paid at the end of the term is
$10,000 X (1.12)2 = $12,544
For the two years of payment, the monthly amount to be paid is
$12,544/24 = $522.67
The total interest = $12,544- $10,000 =$2,544 in 2 years or $106 Per month
For Light Stream. The loan provider, the repayment time is 24 months
The Loan amount to be financed is 80% of the total i.e. $8,000
The Interest rate is 11.89% per annum
The payment period is 24 months
The total amount paid at the end of the term is
$8,000 X (1.1189)2 = $ 10,015.50
If you pay $2,000 to the car dealer, the car will cost $ 10,015.50 + $ 2,000 = $ 12,015.50
The interest to be incurred is $10,015.50 - $ 8,000 =$ 2,015.50 in two years or $167.96 per month.
4 Which Loan Company would you choose
Bank of America auto loans would be ideal for me to go for the loan, the lender provides 100% financing of the car and the interest rates is lower than the one for Light Stream, who not only have a higher

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