Question

Assume you will purchase a new car. The dealer is currently offering a special promotion: you can choose A) a $1500 rebate up front with 6% financing OR B) 0% financing for the first 36 months and 6% financing for the last 2 years. Both loans are for 5 years. Find the car you want to purchase and its cost and where you can purchase it from.(Do this from an online website or at a dealership) For promotion A Compute the cost of the car after the rebate . Compute your monthly payment at the 6% interest. Compute the final amount you paid (including interest) Subtract the price of the car from the amount you paid to get the amount of the interest you paid. For promotion B Since 3 years is 3/5 of the loan, take 3/5 the price and compute the monthly payment (this amount divided by 36 since there is no interest) . Take the remaining 2/5 of the loan and compute the monthly payment at the 6% interest for the remaining 2 years. Multiply the monthly payment by 24 to get the total amount spent . Add the 36 monthly payments from years 1-3 to the 24 monthly payments from years 4-5 . Compute the final amount you paid (including interest) . Subtract the price of the car from the total amount you paid to get the amount of the interest you paid. Conclusion . Compare the final amount you paid from promotion A and from promotion B and which was the better buy. Show clear calculations I can follow for your turned in work . Report out (typed when possible) all the calculations with your conclusions.

Answer 1

Lettasu cost is aboud moht 6 -1 3 300

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