A community for students. Sign up today!
Here's the question you clicked on:
 0 viewing
 2 years ago
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
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

This Question is Closed

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

shivamsinha
 2 years ago
Best ResponseYou've already chosen the best response.0Option 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)
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
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.