Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license fees. The dealership gives you two financing options: 1) Option A: The dealership takes $800 off the price of the car. You must make a down payment of $2000 and can finance the rest at 2.99% APR for 72 months. a) How much will you be financing? b) How much will your monthly payments be under this option? (Round to the nearest dollar.) c) How much total money will you pay under this option? (Don’t forget to include your down payment.) 2) Option B: The dealership takes $1000 off the price and 0% financing for 36 months. a) How much will you be financing? b) How much will your monthly payments be under this option? (Round to the nearest dollar.) c) How much total money will you pay under this option? 3) Would you choose option A or option B? Why?
Suppose that you have decided to buy a certain car that costs $28,950, including taxes and license fees. The dealership gives you two financing options:
1) Option A: The dealership takes $800 off the price of the car. You must make a down payment of $2000 and can finance the rest at 2.99% APR for 72 months.
a) How much will you be financing?
b) How much will your monthly payments be under this option? (Round to the nearest dollar.)
c) How much total money will you pay under this option? (Don’t forget to include your down payment.)
2) Option B: The dealership takes $1000 off the price and 0% financing for 36 months.
a) How much will you be financing?
b) How much will your monthly payments be under this option? (Round to the nearest dollar.)
c) How much total money will you pay under this option?
3) Would you choose option A or option B? Why?
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