Question
Sharon is considering the purchase of a car. After making the down payment, she will finance $10,290.00. Sharon is offered three maturities. On a four-year
Sharon is considering the purchase of a car. After making the down payment, she will finance $10,290.00. Sharon is offered three maturities. On a four-year loan, Sharon will pay $251.21 per month. On a five-year loan, Sharon's monthly payments will be $208.64 On a six-year loan, they will be $180.42. Sharon rejects the four-year loan, as it is not within her budget. How much interest will Sharon pay over the life of the loan on the five-year loan? How much interest will Sharon pay over the life of the loan on the six-year loan? Which should she choose if she bases her decision solely on total interest paid?
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