You are planning to purchase a car and have two financing options. Option A offers a loan at 6% APR for 5 years with a monthly payment of $485, while Option B offers a loan at 5% APR for 4 years with a monthly payment of $575. Assuming that the car costs $20,000, which financing option should you choose and why?

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The detailed answer for the above question is provided below To determine which financing option is better we need to compare the total cost of each o... View the full answer