Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume you are shopping for a pre-owned car and intend to finance part of the purchase through an installment loan charging 3.75% APR . You

Assume you are shopping for a pre-owned car and intend to finance part of the purchase through an installment loan charging 3.75% APR. You want to find the best deal comparing the offers from two different dealers. Your calculation will not include any Trade-in Value, sales taxes, or any other fees. Grab a piece of paper to write out different results, then filll in the blanks with the answers you have calculated

The car you've decided to purchase costs $18,000.

Dealer 1 is offering terms of $3,000 down and 48 monthly payments with a monthly payment of . (Blank)

Dealer 2 is offering terms of $3,500 down and 60 monthly payments with a monthly payment of . (Blank)

If you choose Dealer 1's offer you will pay $ (Blank)as the total cost for the car.

If you choose Dealer 2's offer you will pay $ (Blank)as the total cost for the car.

From a strictly financial perspective, which dealer is offering the better choice? Dealer 1 or Dealer 2? (BLANK)

Round your answers to the nearest whole dollar and enter them without commas or decimals (example, enter 1000, not $1,000.00)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essentials Of Machine Learning In Finance And Accounting

Authors: Mohammad Zoynul Abedin, M. Kabir Hassan, Petr Hajek, Mohammed Mohi Uddin

1st Edition

0367480816, 978-0367480813

More Books

Students also viewed these Finance questions