A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 one year ago
Jaylen has decided to purchase a $14,750 car and would like to finance it for five years. Her bank has offered her a standard 6.9% APR, while the dealership has offered her a special 3.9% APR. How much money will she save each month by choosing financing through the dealership?
A. $29.45
B. $24.61
C. $20.39
D. $43.25
anonymous
 one year ago
Jaylen has decided to purchase a $14,750 car and would like to finance it for five years. Her bank has offered her a standard 6.9% APR, while the dealership has offered her a special 3.9% APR. How much money will she save each month by choosing financing through the dealership? A. $29.45 B. $24.61 C. $20.39 D. $43.25

This Question is Closed

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1You will need the Loan Payment Formula: http://www.1728.org/loanform.htm MnthPmt = rate + [rate/((1+rate)^months)1) ] * principal WHERE RATE IS THE MONTHLY RATE SO RATE = .069/12 = MnthPmt = 0.00575 + [.00575/((1.00575^60)1)*14,750 MnthPmt = (0.00575 + (0.00575/1.41059543682032000)) * 14,750 MnthPmt = (0.00575 + (0.00575/.41059543682032000)) * 14,750 MnthPmt = (0.00575 + 0.0140040523697204)*14,750 MnthPmt = (0.0197540523697204)*14,750 MnthPmt = 291.37 FOR RATE = 3.9 MONTHLY RATE = .00325 MnthPmt = 0.00325 + [.00325/((1.00325^60)1)*14,750 MnthPmt = 0.00325 + [.00325/((1.00325^60)1)*14,750 MnthPmt = 0.00325 + [.00325/(1.214926777923961)]*14,750 MnthPmt = 0.00325 + [.00325/(.21492677792396)]*14,750 MnthPmt = [0.00325 + 0.0151214289414874]*14,750 MnthPmt = 0.0183714289414874 * 14,750 MnthPmt = 270.98 291.37  270.98 = 20.39 Difference Answer is C
Ask your own question
Sign UpFind 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.