Question

You wish to buy a new car and narrow your choice to Saturn, Cavalier, and Hyundai. Each company offers you its best deal:

Saturn	$13,990	$1000 down	3.5% interest per year for up to 60 month
Cavalier	$13,550	$1500 down	4.5% interest per year for up to 60 month
Hyundai	$12,400	$500 down	6.5% interest per year for up to 48 month

You are able to spend at most $475 a month on a car payment.

a) Formulate a dynamical system for the evolution in time of your loan, assuming full monthly payments of $475 a month (with the possible exception of the last month when the sum to pay might be lower).

b)How long (in months) does it take to pay for each of the cars?

c)For which car you end up paying the most?

Answer 1

a) Formulate a dynamical system for the evolution in time of your loan, assuming full monthly payments of $475 a month (with the possible exception of the last month when the sum to pay might be lower).

b) How long (in months) does it take to pay for each of the cars?

c) For which car you end up paying the most?

	Saturn	Cavalier	Hyundai
No. of Months	28	26	26
Total Payment	14081.53	13709.98	12845.88
Extra Payment	91.52648	159.9815	445.8751