Question
Barry Wood wants to buy a used car that costs $5,000. He has two possible loans in mind. One loan is through the car dealer;
Barry Wood wants to buy a used car that costs $5,000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 8.5% and requires a 10% down payment. (Round your answers to the nearest cent.)
(a) Find the monthly payment for each loan.
dealer $
credit union $
(b) Find the total interest paid for each loan.
dealer $
credit union $
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428704
