Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
123jade
Group Title
A car dealer offers you two deals on a car that costs $14,000. Please calculate the monthly payment, given these two payment options the car dealer is offering.
Payment Option 1: You can finance the car for 60 months with no interest if you make a $2,000 down payment.
Payment Option 2: You can finance the car for 72 months (6 years) with 2% simple annual interest and no down payment. (Hint: To calculate simple annual interest, use the formula Interest = Principal * Rate * Time. Add the amount of interest to the price of the car.)
Which monthly payment amount is lower? Please explain
 2 years ago
 2 years ago
123jade Group Title
A car dealer offers you two deals on a car that costs $14,000. Please calculate the monthly payment, given these two payment options the car dealer is offering. Payment Option 1: You can finance the car for 60 months with no interest if you make a $2,000 down payment. Payment Option 2: You can finance the car for 72 months (6 years) with 2% simple annual interest and no down payment. (Hint: To calculate simple annual interest, use the formula Interest = Principal * Rate * Time. Add the amount of interest to the price of the car.) Which monthly payment amount is lower? Please explain
 2 years ago
 2 years ago

This Question is Closed

suzy4321 Group TitleBest ResponseYou've already chosen the best response.0
option 1 i think its 60 dollars monthly if he leaves 2,000 down payment so 12,000/6 =200
 2 years ago

suzy4321 Group TitleBest ResponseYou've already chosen the best response.0
divided by 60 not 6
 2 years ago

shivamsinha Group TitleBest ResponseYou've already chosen the best response.0
Option one: pay 2000 down. Now you owe 140002000= 12000 to get the monthly payment, divide 12000/60 Option two: no down payment. So you owe 14000. Interest is 2% per year for 6 years: P*r*t=14000*.02*6= total interest that will be charged. Add interest to 14000 to get total amount of loan To get the monthly payment, divide by 72. Hoping this helps! (I got 200 for option 1, and 217.78 for option2)
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.