Suppose you are thinking about buying a car and have narrowed down your choices to two...

 

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Suppose you are thinking about buying a car and have narrowed down your choices to two options: The new-car option: The new car costs $21,000 and can be financed with a four-year loan at 6.15%. The used-car option: A two-year old model of the same car costs $18,000 and can be financed with a four-year loan at 6.84% What is the difference in monthly payments between financing the new car and financing the used car? Suppose you are thinking about buying a car and have narrowed down your choices to two options: The new-car option: The new car costs $21,000 and can be financed with a four-year loan at 6.15%. The used-car option: A two-year old model of the same car costs $18,000 and can be financed with a four-year loan at 6.84% What is the difference in monthly payments between financing the new car and financing the used car?