Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a 3-year loan with an APR of 10 percent while another dealer offers her a monthly payment of $158.00 on a 4-year loan with an APR of 12 percent. If she can afford to make either payment, which loan costs less overall?

Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a 3-year loan with an APR of 10 percent while another dealer offers her a monthly payment of $158.00 on a 4-year loan with an APR of 12 percent. If she can afford to make either payment, which loan costs less overall?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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