1. Suppose that you consider different dealer options for a car for $19,900. Calculate monthly...
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1. Suppose that you consider different dealer options for a car for $19,900. Calculate monthly payment and total interest for each option. Which option is the best in terms of interests? Which option is the most affordable in terms of monthly payments? Which option is the most affordable in terms of down payments? (10 pts)
Option 1: DP=$1,990, APR=2%, term=2 years
Option 2: DP=$1,990, APR=5%, term=3 years, Rebate=$300
Option 3: DP=$500, APR=9%, term=5 years, Rebate=$100
2. Suppose a new car costs $35,000 with $5,000 of down payment. APR is 10%, Term is 10 years, sales tax 5%, title/registration fee is $150. What would the monthly payment be? (5 pts)
(Show your work to get points)
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