Dennis Lamenti wants to buy a new car that costs $ 15 , 829.32 . He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at 7 3 4 % and requires a down payment of $ 1 , 000 . The second is through his bank; it is a four-year simple interest amortized loan at 7 3 4 % and requires a down payment of $ 1 , 000 . a. Find the monthly payment for each loan. b. Find the total interest paid for each loan. c. Which loan should Dennis choose? Why?
Dennis Lamenti wants to buy a new car that costs $ 15 , 829.32 . He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at 7 3 4 % and requires a down payment of $ 1 , 000 . The second is through his bank; it is a four-year simple interest amortized loan at 7 3 4 % and requires a down payment of $ 1 , 000 . a. Find the monthly payment for each loan. b. Find the total interest paid for each loan. c. Which loan should Dennis choose? Why?
Solution Summary: The author explains how to find the monthly payment for each loan for the given condition.
Dennis Lamenti wants to buy a new car that costs
$
15
,
829.32
. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at
7
3
4
%
and requires a down payment of
$
1
,
000
. The second is through his bank; it is a four-year simple interest amortized loan at
7
3
4
%
and requires a down payment of
$
1
,
000
.
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