Question
You want a new car. At the dealership, you find a car that you like. The dealership gives you two payment options: 1. Pay $23,000
You want a new car. At the dealership, you find a car that you like. The dealership gives you two payment options:
1. Pay $23,000 in cash for the car todayOR
2. Pay $370.41 at the end of each month for six years at 5% (0.41667% monthly for 72n).
25. $__________.__ __How much CASH (in total) will you end up paying if you choose to make monthly payments for the car?
26. $__________.__ __How much interest (in total) will you pay if you choose to make payments instead of paying cash for the car today?
27. $_____. __ __How much interest has accrued by the time the first car payment is due (round to two decimal places)?
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