Jade bought a car for $21,400 at an APR of 3.6%, compounded monthly, by agreeing to make monthly payments of $149.00 for 48 mont
hs. After 48 months, Jade plans to make a balloon payment. Usually, the monthly payment on a 48-month loan for $21,400 at an APR of 3.6%, compounded monthly, is $479.37. Jade is wondering how much more expensive the balloon payment option is. How much in total will Jade have paid after making the balloon payment?
How much Jade would have paid if she had just made the usual payment of $479.37 for 48 months. How much more expensive was the balloon payment option for Jade?
