A car dealer offers you two deals on a car that costs $16,000.Please 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 $1,000 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 payment amount is lower? Please explain how you

Question

A car dealer offers you two deals on a car that costs $16,000.Please 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 $1,000 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 payment amount is lower? Please explain how you