Anonymous

# Math! Petra is going to buy a new car for \$27,500. She is going to finance the amount over 4 yrs. The...?

car's dealership has offered her an interest rate of 11.2% compounded monthly.

a) What would her monthly payments be?

b) If she decided to buy the car at a year-end inventory clearance sale she would end up paying only 4.9% interest. How much less would she pay per month?

c) How much would Petra save in total in total if she bought the car at the end-of-year clearance sale?

thx! plz use formulas

Relevance

Do your own homework. You need a spread sheet formulated for loans to figure those monthly payments. But, I can tell you right now that if she finances a car at 11.2% she's getting the shaft.

Source(s): Have never financed a car for that high an interest rate.
• 3 years ago

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• Anonymous

The math formulas are VERY complex and almost impossible to demonstrate. Instead, use a business calculator or an online calculator such as this one: