charged. 5.137 To buy a car costing $13 600 you can pay $1600 down and the...

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charged. 5.137 To buy a car costing $13 600 you can pay $1600 down and the balance in 36 monthly payments of $450 each. You can also borrow the money from a loan company and repay $13 600 by making quarterly payments of $1060 over 5 years, first payment to be made in 3 months. By comparing the annual effective rates of interest charged, determine which option is better. Ans. Borrow 1 deposits of $1000 charged. 5.137 To buy a car costing $13 600 you can pay $1600 down and the balance in 36 monthly payments of $450 each. You can also borrow the money from a loan company and repay $13 600 by making quarterly payments of $1060 over 5 years, first payment to be made in 3 months. By comparing the annual effective rates of interest charged, determine which option is better. Ans. Borrow 1 deposits of $1000

Answer rating: 100% (QA)

Option 1 Down payment and monthly payments Down payment 1600 Loan amount 13600 1600 12000 Number of ... View the full answer