Question

2. Your cousin is deciding whether to buy a car now or to wait until he has more

Answer 1

Answer:

option 2

Step-by-step explanation:

I'm using the assumption that he will have to pay for 4 years (as stated in the problem). You will need the length of time he would be making payments (in months) or the total cost of the vehicle to solve this problem.

4 years = 12 x 4 = 48 months

Option 1: 500 + 195 (48) = 500 + 9360 = 9,860

Option 2: 4,000 + 55 (48 - 6) = 4,000 + 55 (42) = 4,000 + 2310 = 6310

If he can wait six months, it will save him about $3,500 to go with Option 2.