Question 1200900
A will cost 22,000 up front or 458.33 per month for 48 months.
B will cost 20,500 up front or 453.75 per month for 48 months.
if she can pay up front, she should go with B.
if she can't pay up front, she should also go with B.
sounds like B is the winner either way, although it would be a bigger winner if she could pay up front.
if she can pay up front, she saves 1500 by choosing B.
if she pays on time, her total payments to B would be equal to 48 * (458.33 minus 453.75) = 218.84 less than payments to A.
that's what i get.
payment analysis was done using the financial calculator at <a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>
results of the analysis using that calculator are shown below.


<img src = "http://theo.x10hosting.com/2023/031202.jpg">


<img src = "http://theo.x10hosting.com/2023/031203.jpg">


in the first analysis, the present value is 22000 and the interest rate is 0% per moneh.


in the second analysis, the present value is 20500 and interest rate is 3%/12 = .25% per month.