est Test 3 - Chapter 8 1 pt 423 of 25 (16 Suppose that you are thinking about bu
ID: 2782945 • Letter: E
Question
est Test 3 - Chapter 8 1 pt 423 of 25 (16 Suppose that you are thinking about buying a car and have narrowed down your choices to two options The new car option The new car costs $26,000 and can be financed with a five-year loan at 6 98 The used car option: A three-year old model of the same car costs $15,000 and can be financed with a five-year loan at 720 What is the difference in monthly payments between financing the new car and financing the used car? in monthly payments between financing the new car and financing the used car is s (Round to the nearest cent as needed.)Explanation / Answer
use pmt formuale to find the monthly payment in each case
=pmt(rate,nper,pv,fv,type)
option 1:
=pmt(6.98%/12,5*12,-26000,0,0)
=514.59
option 2:
=pmt(7.28%/12,5*12,-15000,0,0)
=299
The difference is 215.58
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.