Final answer:
The monthly payment for 0% financing for 48 months is $575. If you choose the rebate, the monthly payment would be approximately $578. If you want to make monthly payments of $439 with 1.5% financing for 48 months, you would need to make a down payment of $0 or more. The interest paid over the life of the loan with a 17% down payment and 1.5% financing for 48 months would be $2,091.04.
Step-by-step explanation:
To calculate the monthly payment for 0% financing for 48 months, you can divide the total price of the car by the number of months: $27,600 / 48 = $575. This means your monthly payment would be $575.
If you choose the rebate option, you will need to secure a loan for the remaining balance. Using the given interest rate of 5.02% compounded monthly, you can use a loan calculator to determine the monthly payment. With a $2,600 rebate applied to the loan amount, the remaining balance would be $27,600 - $2,600 = $25,000. Plugging this amount into the loan calculator, the monthly payment would be approximately $578.
If you want to make monthly payments of $439 with 1.5% financing for 48 months, you can use a loan calculator to determine the amount of down payment needed. With 1.5% financing, you can find the loan amount by dividing the monthly payment by the monthly interest rate: $439 / 0.015 = $29,266.67. Subtracting the loan amount from the total price of the car gives you the down payment needed: $27,600 - $29,266.67 = -$1,666.67. Since a down payment cannot be negative, you would need to make a down payment of $0 or more.
To calculate the interest paid over the life of the loan with a 17% down payment and 1.5% financing for 48 months, you can find the loan amount by multiplying the total price of the car by (1 - down payment percentage): $27,600 * (1 - 0.17) = $22,932. With compounding monthly at 1.5%, you can use a loan calculator to find the total amount paid: $23,932 * (1 + 0.015)^48 = $25,023.04. Subtracting the loan amount from the total amount paid gives you the interest paid: $25,023.04 - $22,932 = $2,091.04.