You want to purchase a new car that costs $25,000. You have a down payment of $5,000 and are looking to finance the remaining $20,000 with a car loan. You have two options for financing: a 3-year loan with an interest rate of 5% per year or a 5-year loan with an interest rate of 6% per year. Which loan option is the better choice for you, and why?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below First let... View the full answer