Question

A car dealer offers you two deals on a car that costs $14,000. Calculate the monthly payment, given these two payment options the car dealer is offering.

Payment Option 1: You can finance the car for 60 months with no interest if you make a $2,000 down payment.

Payment Option 2: You can finance the car for 72 months (6 years) with 2% simple annual interest and no down payment. (hint: To calculate simple annual interest, use the formula Interest = Principal * Rate * Time. Add the amount of interest to the price of the car.)
Which monthly amount would be lower?

Answer 1

Payment Option 2 do you need me to show my work??

Answer 2

yes plz

Answer 3

14,000-2,000 (downpayment) = 12,000.....12,000 / 60 = 2,000 a month this is option 1..................... 14,000 / 72 months 194.44 then 2 % of that is 3.88 add 194.44 plus 3.88 = 198.32 way less than the compition of opion 1

Answer 4

thanks lets give each other a medal!

Answer 5

i actually just did this for another guy :)

Answer 6

okay

Answer 7

talkin to cutter and eash more

Answer 8

??

Answer 9

lololol

Answer 10

eashmore hasn't said a word yet

Answer 11

yeah

Answer 12

but he is typing

Answer 13

hurry @eashmore

Answer 14

uf level 5 and ur smarter!! lol

Answer 15

ya...... what grade or you in

Answer 16

11

Answer 17

im in 6th

Answer 18

and i can answer your question

Answer 19

im advanced though

Answer 20

nooooo 11 yrs old

Answer 21

i do 12th grade math o you can trust me

Answer 22

i do 9 th grade math

Answer 23

doing geometry

Answer 24

let me guess your in 5th grade or six

Answer 25

im 6th

Answer 26

Option 1 is pretty easy since there is no interest incurred: \[Monthly~ payment = {(Cost - Down ~payment) \over months}\]

Option 2 is a little bit more tricky. \[Monthly~ payment = {(Cost*(1+rate*time)) \over months}\] Remember that time is in years.

Answer 27

ya so am i

Answer 28

LETS GIVE MEDALS!!!!!!!!

Answer 29

i gave you one and you gave me one

Answer 30

eashmore give me medal and i'll give u one

Answer 31

gtg ttugl (got to go talk to u guys later)

Answer 32

lets post that question and give each other medal again