Question

economics question

Answer 1

uh I'm not 100% sure on some of the values but I'll give it my best shot

total cost is just price + sales tax

Answer 2

23,980

Answer 3

and 10,355

Answer 4

good

when it says down payment, since the down payment is 10% you just need to calculate 10% of the total cost for both columns

Answer 5

23,980 * .10 = 2,398

10,355 * .10 = 1,035.5

Answer 6

good

then the borrowed amount is just

total cost - down payment (so row 3 minus row 2)

Answer 7

21582
9319.5

Answer 8

$23,980-$2,398=21582
$10,355-1,035.5=9319.5

Answer 9

good

this is where I'm a little uncertain I think you would just go to loancalculator.org and plug in the loan amount, the number of months (5 years * 12 months = 60 months), and the interest rate (5%, I think you need to put in 5 as the interest rate)

Answer 10

for the loan amount would I use price or total cost

Answer 11

amount to borrow

Answer 12

$407.28

Answer 13

$175.87

Answer 14

good

for total amount of payments I'm really not sure about this, my best guess would be the monthly payment * 60 months (not sure how/if that takes into account compounding though)

Answer 15

$407.28*60=24,436.8

Answer 16

$175.87*60=$10,552.2

Answer 17

good then to find the interest paid you just subtract total amount of payments - borrowed amount

Answer 18

$24,436.8-$21582=$2854.8

Answer 19

$10,552.2-$9319.5=$1232.7

Answer 20

good

if you have enough time to submit I'd probably get a second opinion to double check just in case ;;

Answer 21

OKy and what about which car would be best.. ? The first one right because its newer

Answer 22

well this is an opinion-based question, the newer car is more than twice the cost of the used car after taking the loan into account, for some people it might be worth it. We don't know anything about the used car (how old it is, how many miles, etc.). New cars come with a warranty in case any repairs/replacements need to be done w/in the warranty time period, but new cars tend to lose their value very quickly.

Answer 23

personally I'd go with the older one but it's really up to you