Barry Wood wants to buy a used car that costs $3000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 8.5% and requires a 10% down payment. (a) Find the monthly payment for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $ (b) Find the total interest paid for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $
Barry Wood wants to buy a used car that costs $3000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 8.5% and requires a 10% down payment. (a) Find the monthly payment for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $ (b) Find the total interest paid for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Barry Wood wants to buy a used car that costs $3000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 8.5% and requires a 10% down payment.
(a) Find the monthly payment for each loan. (Give your answer to the nearest cent.)
(b) Find the total interest paid for each loan. (Give your answer to the nearest cent.)
| Dealer | $ |
| Credit Union | $ |
(b) Find the total interest paid for each loan. (Give your answer to the nearest cent.)
| Dealer | $ |
| Credit Union | $ |
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