charged. 5.137 To buy a car costing $13 600 you can pay $1600 down and the balance in 36 monthly payments of $450 each. You can also borrow the money from a loan company and repay $13 600 by making quarterly payments of $1060 over 5 years, first payment to be made in 3 months. By comparing the annual effective rates of interest charged, determine which option is better. Ans. Borrow 1 deposits of $1000