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Two parts to the question:

1A. I am planning to buy a brand new Tesla. The price (after tax) is $83,500. They're offering conventional car loan, five years, at 4.24%. What should I expect my monthly payment to be?

a. 1,101.01

b. 1,206.25

c. 1,335.36

d. 1,547.22

1B. Tesla is out of the question. We can budget for a shiny new Toyota Yaris. Same term, conventional loan, five years, 3.65%, with monthly payment. Price is $14,250. What should I expect my monthly payment to be?

a. 282.15

b. 273.01

c. 260.19

d. 245.35

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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Question 3 of 25

What is the total present value of $80 received in one year, $300 received in two years, and $700 received in six years if the discount rate is 7%? Note: There is no direct formula for this kind of PV computation other than the basic equation, PV = FV/(1+r)t. 0 1 2 3 4 5 6 |-----------|----------|----------|----------|----------|---------| PV=? $80 $300 $700

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