After reading consumer car guides and receiving advice from family and friends, Ayshahas chosen the new car she would like to purchase. She now wants to research her financingoptions to choose the best way to pay for the car.Aysha knows that with taxes, licence, delivery, and dealer preparation fees, her car willcost $17 650. She has saved $7500 toward the purchase price but must borrow the rest. Shehas narrowed her financing choices to three options: dealer financing, credit union financing,and bank financing.(i) The car dealer has offered 48-month financing at 8.5% compounded monthly.(ii) The credit union has offered 36-month financing at 9% compounded quarterly. It hasalso offered 48-month financing at 9.3% compounded quarterly.(iii) The bank has offered 36-month financing at 8.8% compounded semi-annually. It hasalso offered 48-month financing at 9.1% compounded semi-annually.Aysha desires the financing option that offers the best interest rate. However, she alsowants to explore the financing options that allow her to pay off her car loan more quickly. Question Suppose Aysha wants to pay off her car loan within three years.(a) What is the effective annual rate of interest for both of the 36-month options?(b) How much interest will Aysha save by choosing the better option?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
After reading consumer car guides and receiving advice from family and friends, Aysha
has chosen the new car she would like to purchase. She now wants to research her financing
options to choose the best way to pay for the car.
Aysha knows that with taxes, licence, delivery, and dealer preparation fees, her car will
cost $17 650. She has saved $7500 toward the purchase price but must borrow the rest. She
has narrowed her financing choices to three options: dealer financing, credit union financing,
and bank financing.
(i) The car dealer has offered 48-month financing at 8.5% compounded monthly.
(ii) The credit union has offered 36-month financing at 9% compounded quarterly. It has
also offered 48-month financing at 9.3% compounded quarterly.
(iii) The bank has offered 36-month financing at 8.8% compounded semi-annually. It has
also offered 48-month financing at 9.1% compounded semi-annually.
Aysha desires the financing option that offers the best interest rate. However, she also
wants to explore the financing options that allow her to pay off her car loan more quickly.
Question
Suppose Aysha wants to pay off her car loan within three years.
(a) What is the effective annual rate of interest for both of the 36-month options?
(b) How much interest will Aysha save by choosing the better option?
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