Math 3202 Unit 4: Practice Activity 4.1.2 Materials: Paper and Pencil Computer with internet connection. Calculating Monthly Payments Victoria wants to buy a used car and she is considering two options: Car #1 Sale Price = $15 000, before taxes Financing for 5 years. Interest rate = 3.7% Car #2 Sale Price = $10 000, before taxes Financing for 3 years. Interest rate = 5.5% 1. Victoria has saved $2 000 for a down payment. For each car, determine the amount she would need to borrow, including 15% taxes, and after her down payment. An easy way to do the calculation is shown here: Borrowing amount = (SALE PRICE) x (1.15) - (DOWN PAYMENT) Car #1 Car #2 2. For this part you will need a loan calculator. Most banks have one available on their websites. An example of one that is simple to use can be found here: http://www4.bmo.com/popup/loans/Calculator.html Use the information in the tables above, and a loan calculator to determine Victoria's monthly payment for both cases. Car #1 Car #2