Mr. James is going to buy a car for $12,000. He can finance with the car dealer for 3 years at 12% or he can borrow the money at the bank for 3 years at 8%. The monthly payment for the 12% loan will be $399 and the monthly payment for the 8% loan will be $376. Which best represents the difference in the interest in 12% for 3 years or 8% for 3 years? A $900 C $1,205 B $828 D $523

Mr. James is going to buy a car for $12,000. He can finance with the car dealer for 3 years at 12% or he can borrow the money at the bank for 3 years at 8%. The monthly payment for the 12% loan will be $399 and the monthly payment for the 8% loan will be $376. Which best represents the difference in the interest in 12% for 3 years or 8% for 3 years? A $900 C $1,205 B $828 D $523

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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