SOLUTION: You need to borrow $24,000 to buy a car. You can only afford to make monthly payments of $550. The bank offers 3 choices:3- year loan at 5%, 4-year loan at 6%, and 5-year loan at 7
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-> SOLUTION: You need to borrow $24,000 to buy a car. You can only afford to make monthly payments of $550. The bank offers 3 choices:3- year loan at 5%, 4-year loan at 6%, and 5-year loan at 7
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Question 1050470: You need to borrow $24,000 to buy a car. You can only afford to make monthly payments of $550. The bank offers 3 choices:3- year loan at 5%, 4-year loan at 6%, and 5-year loan at 7%.
A) What's the monthly payment for each loan?
B)Which loan is best for your situation?
C) What's the total amount you would pay over the term of each loan? Answer by ewatrrr(24785) (Show Source):
You can put this solution on YOUR website! 3- year loan at 5%: $667.18 (x36 for total amount you would pay over the term of the loan)
4-year loan at 6%: $500.61 **** x 48
5-year loan at 7%: $400.71 x60
C: Multiply each by the number of monthly pmts for total amount you would pay over the term of the loan.
