Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $32,000 and can be financed with a five-year loan at 5.81%. The used-car option: A three-year old model of the same car costs $16,000 and can be financed with a three-year loan at 7.21%. What is the difference in monthly payments between financing the new car and financing the used car? Use PMT = - nt 1- The difference in monthly payments between financing the new car and financing the used car is 2$ (Round to the nearest cent as needed.)

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Suppose that you are thinking about buying a car and have narrowed down your choices to two
options.
The new-car option: The new car costs $32,000 and can be financed with a five-year loan at
5.81%.
The used-car option: A three-year old model of the same car costs $16,000 and can be financed
with a three-year loan at 7.21%.
What is the difference in monthly payments between financing the new car and financing the used
car? Use PMT =
nt
The difference in monthly payments between financing the new car and financing the used car is
$4
(Round to the nearest cent as needed.)
Transcribed Image Text:Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $32,000 and can be financed with a five-year loan at 5.81%. The used-car option: A three-year old model of the same car costs $16,000 and can be financed with a three-year loan at 7.21%. What is the difference in monthly payments between financing the new car and financing the used car? Use PMT = nt The difference in monthly payments between financing the new car and financing the used car is $4 (Round to the nearest cent as needed.)
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