Question: please explain step by step Kala is taking out an amortized loan for $34,000 to buy a new car and is deciding between the offers
please explain step by step
Kala is taking out an amortized loan for $34,000 to buy a new car and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the car loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A bank has offered her a 5-year car loan at an annual interest rate of 7%. Find the monthly payment. (b) An online lending company has offered her a 6-year car loan at an annual interest rate of 6%. Find the monthly payment. $0 (c) Suppose Kala pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? O Bank The total amount paid would be $ O Online lending company The total amount paid would be $ less than to the online lending company. less than to the bank. X
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
