A college student is buying a used car for $10,000. The student can either pay in full with cash from savings or finance the car for 60 months at a monthly compounding interest rate of 4.25%, which results in a monthly payment of $206.05. How much more is paid over the life of the loan versus paying in cash?

Answer rating: 100% (QA)

To calculate how much more is paid over the life of the loan when financing compared to payi... View the full answer