Chapter A.1, Problem 16E

Natasha went to three car dealerships to check the prices of the same Ford two-door coupe. The city where the dealerships are located has a sales tax of 5% and a license fee of 2%. All dealerships offer extended warranties that are 3 years/70,000 miles. Use the following information gathered by Natasha to answer exercises 15 and 16.

a. Which dealership offers the most expensive purchase price? State this amount.

b. Each dealership offers a different interest rate on a 48-month loan without a down payment, resulting in the following monthly payments:

Dealership 1	Dealership 2	Dealership 3
$589.27/month	$549.04 /month	$603.07/month

From which dealership should Natasha buy the Ford coupe so that the total cost of the car is the most expensive? State this amount.

c. Compare the results of parts (a) and (b). What conclusion can you make?