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Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10% of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8% for the loan and require monthly payments over the next 4 years. What is the minimum down payment that Mark can make

User Warz
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1 Answer

3 votes

Answer:

the minimum down payment that Mark can make is $1,650

Step-by-step explanation:

The computation of the minimum down payment that Mark can make is given below:

Purchase price $21,000

Less: Trade In -$4,500

Net price $16,500

So, the down payment needed should be

= 10% of $16,500

= $1,650

Hence, the minimum down payment that Mark can make is $1,650

User Grouchal
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