You want a new car. At the dealership, you find a car that you like. The dealership gives you two payment options: 1. Pay $23,000 in cash for the car today..OR Pay $370.41 at the end of each month for six years at 5% (0.41667% monthly for 72n). 2. How much CASH (in total) $ will you end up paying if you choose to make monthly 31. payments for the car? 32. $ How much interest (in total) will you pay if you choose to make payments instead of paying cash for the car today? 33. $ How much interest has accrued by the time the first car payment is due (round to two decimal places)?
You want a new car. At the dealership, you find a car that you like. The dealership gives you two payment options: 1. Pay $23,000 in cash for the car today..OR Pay $370.41 at the end of each month for six years at 5% (0.41667% monthly for 72n). 2. How much CASH (in total) $ will you end up paying if you choose to make monthly 31. payments for the car? 32. $ How much interest (in total) will you pay if you choose to make payments instead of paying cash for the car today? 33. $ How much interest has accrued by the time the first car payment is due (round to two decimal places)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Use the following to answer questions 31 – 33
You want a new car. At the dealership, you find a car that
you like. The dealership gives you two payment options:
1.
Pay $23,000 in cash for the car today...OR
Pay $370.41 at the end of each month for six
years at 5% (0.41667% monthly for 72n).
2.
How much CASH (in total)
up paying if you choose to make monthly
31.
$
will
you
end
payments for the car?
32.
How much interest (in total)
$
will you pay if you choose to make payments instead
of paying cash for the car today?
33.
$
How much interest has accrued by
the time the first car payment is due (round to two
decimal places)?
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