MyLab Math with Pearson eText -- Access Card -- for Thinking Mathematically

7th Edition

ISBN: 9780134705095

Author: Robert F. Blitzer

Publisher: PEARSON

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Textbook Question

Chapter 8.6, Problem 9E

In Exercises 1-10, use

P M T = P ( r n ) [ 1 − ( 1 + r n ) − n t ]

Round answers to the nearest dollar.

Suppose that you are buying a car for $60,000, including taxes and license fees. You saved $ 10,000 for a down payment. The dealer is offering too two incentives:

Incentive A is $5000 off the price of the car, followed by a five-year loan at 7.34%.

Incentive B does not have a cash rebate, but provides free financing (no interest) over five years.

What is the difference in monthly payments between the two offers? Which incentive is the better deal?

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Chapter 8.6, Problem 8E

Chapter 8.6, Problem 10E

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Chapter 8 Solutions

MyLab Math with Pearson eText -- Access Card -- for Thinking Mathematically

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Solution Summary: The author explains how to calculate the amount of difference in monthly payments under two incentives, i.e., incentive A and incentive B.

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Chapter 8 Solutions