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Question: t tools addons help last edit was made 3 days...

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t Tools Add-ons Help Last edit was made 3 days ago b hal text- Times New ▼ 11-Blu-/GDQB: 拦 Part 6. Lets buy a car? Prof. Finance decides to buy a Nissan Maxima. After paying a down payment and taxes, Prof. Finance can finance the rest of the purchase price with a loan of $28,000 for 60 months at a special finance rate offered by Nissan of 0.9% APR compounded monthly. He finds out that Nissan has a second offer of$2250 cash back (rebate) in place of the special 0.9% finance rate offered. Prof. Finance finds he can get 3.39% APR compounded monthly financing online for 60 months if he takes the S2250 cash back offer. The $2250 cash back would be used as an additional down payment reducing the loan amount. Answer the following questions. 1I 1. What is the effective annual rate for each loan option? N 60

5. The local Nissan dealer has found a special 2.29% APR loan rate for 60 months from Citibank that Prof. Finance qualifies for if he elects the s2250 cash back option. Prof. Finance says thats great However, he decides he wants a monthly payment of $425 (for 60 months) and is willing to put additional money down to get the lower monthly payment. How much additional down payment would Prof. Finance need with the 2.29% APR financing and $2250 cash back for 60 months to make his monthly payment $425? Note: original cash bacH-loan amount 25,750. N-60

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