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 ho

Answer 1

help

Answer 2

?

Answer 3

As it is simple interest, use the formula Interest = Principal * Rate * Time, then you'll get the interest value. Add that to your original value, and calculate the monthly average~

Answer 4

60p+1,000=16,000
-1,000=-1000
60p=15,000
$250 dollars for option 1.
16,000 at 2percent finance
15,000x0.02x6
$1920 dollars interest.
Option 2 is the lower amount.

Answer 5

is tht right?

Answer 6

Yh, I got that too~

Answer 7

sweeet