Mathematics, 18.10.2019 11:30 marchellamazz123
You want to buy a brand new car at the dealer, but you don't have enough cash to pay the full price, so you decide to finance your purchase. the sale price of the car is $19,995.00 and the sales tax is 7.75%. (let's ignore the registration and dealer fees for now - but keep in mind that in real life you will be facing those extra expenses). you have $10,000 cash in your pocket, but you don't want to spend all of it on a down payment, because you still need to pay for school, food, rent, textbooks, etc. a couple of offers that the dealer has are as follows: 1. if you put a $5,000 down payment, you will get a 4.99% apr on your 5-year loan. 2. if you put a $7,500 down payment, you will get a 5.75% apr on your 3-year loan. your task is to calculate how much money you will end up paying for each of the two options (1) monthly and (2) total. analyze which of the offers gives you a better value.
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