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8. How much interest did you pay by the end of Option #1? _9. How much interest did you pay by the end of Option #2? _10. How much interest did you pay by the end of Option #3? 11. Based on this information, which option would you choose? Explain the reason for your choice.

8. How much interest did you pay by the end of Option #1? _9. How much interest did you pay by the end of Option #2? _10. How much interest did you pay by the end of Option #3? 11. Based on this information, which option would you choose? Explain the reason for your choice.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problems 5-11: You are interested in buying a 2020 Jeep Wrangler. To purchase this vehicle, you need a loan for $25,000. The dealer is offering you the following financing options: Option Loan Interest Years #1 $30,000 0% #2 $30,000 0.9% 5 #3 $30,000 1.3% 6 Round to the nearest cent (2 decimals) 8. How much interest did you pay by the end of Option #1? 9. How much interest did you pay by the end of Option #2? 10. How much interest did you pay by the end of Option #3? 11. Based on this information, which option would you choose? Explain the reason for your choice.
Transcribed Image Text:Problems 5-11: You are interested in buying a 2020 Jeep Wrangler. To purchase this vehicle, you need a loan for $25,000. The dealer is offering you the following financing options: Option Loan Interest Years #1 $30,000 0% #2 $30,000 0.9% 5 #3 $30,000 1.3% 6 Round to the nearest cent (2 decimals) 8. How much interest did you pay by the end of Option #1? 9. How much interest did you pay by the end of Option #2? 10. How much interest did you pay by the end of Option #3? 11. Based on this information, which option would you choose? Explain the reason for your choice.
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 In simple interest is the cost in connection with money borrowed. There are different methods for calculating interest such as simple interest, compound interest etc...

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