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katen-ka-za [31]
3 years ago
8

Suppose you are looking at a car priced at $8500. You have two payment options, Option 1 is to take a loan at 6.8% APR and pay i

t off over 36 months. Option 2 is to pay a 15% down payment and then take the same 6.8% APR loan over 36 months. At first glance, it may seem as though there's not much of a difference between the two options.
how much per month is option one, and 2?​
Mathematics
1 answer:
Umnica [9.8K]3 years ago
5 0

Answer:

  • $378.25 and $321.51

Step-by-step explanation:

<h3>Option 1</h3>

<u>Total payment</u>

  • $8500 + 6.8 for 36 month =
  • $8500*1.068*1.5 =
  • $13617

<u>Monthly payment</u>

  • $13617/36 = $378.25
<h3>Option 2</h3>

<u>Down payment</u>

  • 15% of $8500 = $8500*0.15 = $1275

<u>Amount of loan </u>

  • $8500 - $1275 = $7225

<u>Total payment</u>

  • $7225 + 6.8 for 36 month =
  • $7225*1.068*1.5 =
  • $11574.45

<u>Monthly payment</u>

  • $11574.45/36 = $321.51
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