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Mary plans to buy a new car that would cost $25,000. After she consulted with her bank, she determined that she can get a $25,000
Mary plans to buy a new car that would cost $25,000. After she consulted with her bank, she determined that she can get a $25,000 car loan with annual interested rate at 6% compounded monthly for the option of 4-year 48 monthly payments. (a) What is her monthly payment if she decides to take the bank loan? (b) If the car dealer offers Mary an option of $500 monthly payments for 48 months with a $5,000 down payment, which option does Mary want to take, get the loan from her bank or from the car dealer? Why?
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