SOLUTION: A car dealer offer you two deals on a car that costs $16,000.00. Please calculate the monthly payment, given these two pament options the car dealer is offering. Payment Option 1

Question 334306: A car dealer offer you two deals on a car that costs $16,000.00. Please calculate the monthly payment, given these two pament options the car dealer is offering.
Payment Option 1: you can finance the car for 60 months with no interest if you make a $3,000.00 down payment.
Payment Option 2. You can finance the car fo 72 months (6 years) with 1% simple annual interest and no down payment.
Which monthly payment amunt is lower? Please explain to me how you arrived at your answer and show all of your work for each option. I cannot seem to get this problem right.
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
16000-3000=13000
13000/60=216.67 per mo
------------------
16000*.01*5=800
16800/72=233.33 per mo
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