Answered: nnis Lamenti wants to buy a new car…

nnis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One loan is through the car dealer; it is a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Dennis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at

and requires a down payment of $1,000. The second is through his bank; it is a four-year simple interest amortized loan at

and requires a down payment of $1,000. (Round your answers to the nearest cent.)

(b) Find the total interest paid for each loan.

dealer	$
bank	$

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