Finance Paper on Dealer Discount With Bank Financing

Finance Paper
Name
Institution
Date
Vehicle
In the case of Dealer discount with bank financing, Bank of America offers loans at 2.69% APR for the new car (dealer) and for 60 months payment with a $ 30,000 loan amount is $534.94 monthly payments. Where, monthly rate is 2.695/12=0.224167% and P= PV/ PVIFA
PVIFA = (1-(1+. 0.224167%) ^-60/ 0.00224167%= 56.0813
P= 30,000 /56.0813 = $534.94
The sales price depends on the money saved compared to the manufacturer's suggested retail price (MSRP) going up to $ 32790 for the Jeep Grand Cherokee. Combined with banking finance this option allows the potential buyer to choose from a network of dealers already pre-screened.
The 0% interest loan from the dealer is viable and the car would cost roughly $ 29,000, with the price range changing depending on the year of manufacture and location of car outlet., and when paying for 36 months the average payment is $ 805 .56 per month.
The current fixed rates for 3 years Multi Year Guarantee Annuity (MYGA) is 2. 10% and for the 5 year MYGA this is 3.20% (Annuity fyi.com). As such, for the four year period the 3.00% will be utilized to calculate the total savings.
One of the leasing options is paying $ 5,139 after signing documents then paying $ 239 per month for two years for a total of $ 10,875, which is $5,139+ (239*24)= $10,875
Choosing a growing future value annuity option where the first payment is $ 7,000, interest rate is 4%, Growth rate per period is 3% and number of periods is 4 years then the future value $31,044.83
FVGA=P [(1+r) n – (1+g) n)]/ r-g
FVGA= $7,000[1+0.04)4- (1+0.03) 4]/ 0.04-0.03= $31,496.19
Paying for the purchase in cash either partially or fully is the cheapest option compared to dealer discount, interest loan from the dealer and leasing. It is necessary to consider the affordability of the vehicle being financed, with the total cost and repayment changes affecting the payments to be made.
Big purchase-laptop
In choosing laptop computers one has to consider the price, specification and brand, and this is a quality product. One may choose going to stress or buying online with the option of direct delivery to homes.
The rent to own option is available for the Apple - MacBook Pro with Retina Display - 13" - Intel Core i5 - 8GB the format is available for $ 60 per week. The option of using the Citi Credit Card need to also been reviewed since the two year warranty cover offered saves roughly $ 200 and there is protection against accidental damage or theft. Besides purchase security there are price protection and return protections when using credit cards in cases where the warrant runs out (credit cards.com 2016).
To save up and pay for the laptop priced at $ 1,150 then one would need to save 115 dollars for 10 months. The option to save up and purchase the computer is viable since this is the cheaper option and price will likely reduce with new versions and new models
Price to pay for laptop $ 115* 10 months= $ 1,150
Using the credit card purchase saves more during holiday seasons and when there are various purchases. When the credit card balance is $ 1,200 and interest rate of 12.56% at monthly payment of 100 it will take 13 months to pay off the debt and the tot...