1. Financing a New SUV with a Trade-In
Family Car BuyerBackground
A family wants to purchase a new SUV priced at $45,000. They have a trade-in vehicle valued at $10,000 and want to put down $5,000 in cash.
Problem
They need to know their monthly payment and total interest for a 60-month term at a 6.5% interest rate, including 8% sales tax and $600 in fees.
How to use
Set Vehicle Price to 45000, Down Payment to 5000, Trade-In Value to 10000, Sales Tax Rate to 8, Fees to 600, Interest Rate to 6.5, and Loan Term to 60.
Outcome
The amount financed is calculated as $33,400 ($45,000 price - $10,000 trade-in - $5,000 down + $2,800 tax + $600 fees), resulting in a monthly payment of approximately $653.94 and total interest of $5,836.40.