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Alex787 [66]
3 years ago
10

Which is the better deal 0% interest on a $28,300 car or purchasing a $22,000 vehicle with a five-year 6% simple interest loan

Mathematics
1 answer:
ElenaW [278]3 years ago
3 0

Answer:

0% interest on a $28,300 car is a better deal.

Step-by-step explanation:

Compare the total amount to be paid for each option;

<em>Option1 : 0% interest on a $28,300 car</em>

  • You will pay a total of 28,300 since there is $0 payable on interest

<em>Option 2: $22,000 vehicle with a five-year 6% simple interest loan</em>

Find the Amount;<em> A=Simple Interest + Principal</em>

<em>Simple Interest = Principal* rate * time </em>= (22000* 0.06 *5) = 6600

Amount payable= 22,000+6,000= $28,600

Therefore,0% interest on a $28,300 car is a better deal.

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