Erika is weighing her options for transportation. She's narrowed them down to the following: Option A: Buying a new car requiring a loan to finance $10,000 at 1.9% compounded monthly over 60 months Option B: Buying a 6 year old, used car, requiring a loan to finance $6,000 at 3.6%interest compounded monthly over 48 months. a : Calculate Erika's monthly payment for both options b: If you were advising Erika on her options, name at least 3 things other than the monthly payment that she shouls take into consideration in making her decision.
Erika is weighing her options for transportation. She's narrowed them down to the following: Option A: Buying a new car requiring a loan to finance $10,000 at 1.9% compounded monthly over 60 months Option B: Buying a 6 year old, used car, requiring a loan to finance $6,000 at 3.6%interest compounded monthly over 48 months. a : Calculate Erika's monthly payment for both options b: If you were advising Erika on her options, name at least 3 things other than the monthly payment that she shouls take into consideration in making her decision.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Erika is weighing her options for transportation. She's narrowed them down to the following:
Option A: Buying a new car requiring a loan to finance $10,000 at 1.9% compounded monthly over 60 months
Option B: Buying a 6 year old, used car, requiring a loan to finance $6,000 at 3.6%interest compounded monthly over 48 months.
a : Calculate Erika's monthly payment for both options
b: If you were advising Erika on her options, name at least 3 things other than the monthly payment that she shouls take into consideration in making her decision.
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