Reece Mak asked:


The car now is :$22000

The saleman offers
N = 5 yr
PMT = $350/mth
Down PMT= $3000
Interest rate = ???? I dont know what to get, i just get the t-bill one. If i am wrong, please let me know.

I have a HP 10BII financial calculator?
do i plug these into my calculator?
N=60 (5 x 12)
PMT = 350
PV =3000
I/YR = 4.94 (5 yr yield from t-bill 6/5/2006) <- not sure should i use t-bill rate or not
4.94/60

For FV, i got $24,669.85; however, this is the price i am going to pay in 5 yr.

How do I know the PV of the car?

Another question, some people take out loans to buy a car, if i want to take out 5000 for down pmt? How do I compare them? I mean should i borrow or should i make a monthly payment or should i payoff the car?

REYNA