You want to purchase a car for $16,000. Two of the loans you are considering are...

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You want to purchase a car for $16,000. Two of the loans you are considering are listed below. As is the case here, it is common that shorter loans have slightly lower interest rates than longer loans. Calculate the monthly payment and the total amount paid under the terms of each loan. a. 3-year car loan with an APR of 4.2% 1. Monthly payment (show what you entered into financial calculator) (1 pt) b. 1. 60-month car loan with an APR of 4.7% Monthly payment (show what you entered into financial calculator) ii. Total amount paid (show calculations) (1 pt) ii. Total amount paid (show calculations) (1 pt) 2. Does the shorter loan or the longer loan have the lower monthly payment? (1 pt) 3. Does the shorter loan or the longer loan have the lower total amount paid? (0.5 pt) (0.5 pt) You want to purchase a car for $16,000. Two of the loans you are considering are listed below. As is the case here, it is common that shorter loans have slightly lower interest rates than longer loans. Calculate the monthly payment and the total amount paid under the terms of each loan. a. 3-year car loan with an APR of 4.2% 1. Monthly payment (show what you entered into financial calculator) (1 pt) b. 1. 60-month car loan with an APR of 4.7% Monthly payment (show what you entered into financial calculator) ii. Total amount paid (show calculations) (1 pt) ii. Total amount paid (show calculations) (1 pt) 2. Does the shorter loan or the longer loan have the lower monthly payment? (1 pt) 3. Does the shorter loan or the longer loan have the lower total amount paid? (0.5 pt) (0.5 pt)

Answer rating: 100% (QA)

a For the 3 year 36 months loan ra04212 0035 Na36 Ma16000003... View the full answer