Finance Questions

Posts Tagged ‘car finance calculator’

Question: I Need some Math help?

Wade Ellis buys a new car for $16,113.82. He puts 10% down and obtains a simple interest amortized loan for the balance at 11 and 1/2 % interest for four years. If loan fees included in the Finance Charge total $814.14, find the APR. (Use your graphing calculator. Round the answer to one decimal place.)

Answer: The principal on the car left to be paid off will be 90% of the new car price:
(0.9)(16,113.82) = 14502.44

The total amount Wade will have to repay on the loan will be this principal + the interest on it over a 4-year period + the Finance Charge:
14502.44 + (0.115)(4)(14502.44) + 814.14 = 21987.70

The APR:
21987.70 = 14502.44(1 + i)^4
(21987.70/14502.44)^(1/4) = 1 + i
i = .01096 or 11.0%

Finance Application for Monthly Payments on the Graphing Calculator

Question: Why is my first car finance repayment more?

I recently bought a car on finance. The first and last finance repayment are much more then the agreed monthly fee. This is my first financial 'loan'
Is this normal or are they screwing more money from me?

Answer: yes its normal fee because of documentation but i have some excellent material if u want to know n future if u want to buy a car then you will be convenient .if u want to know about all then you should visit this web sight businesstitle.blogspot.com

HD 0% Finance by GZA with Car slide show + Lyrics