Paul is in the market for a used car. He has found the samesports car at two different dealerships and is now consideringwhich dealer he should purchase the car from. Dealer 1 requiresPaul to get the loan through their lending department. Dealer 1 hastold Paul that because they do their own financing, they can getPaul the very best loan possible and Paul will only have to pay$315 per month for 48 months (4 years). Dealer 2 is selling the carfor $13200. Dealer 2 has told Paul he can use their financing orget his own lender, so Paul talked with his bank and learned thathe can get a 4 year car loan for 4.7% APR. Dealer 2 has alsooffered Paul a 4 year loan for 5.7%. Based on these loan options,what is Paul’s lowest monthly loan payment option?
A. $315 per month for 48 months from Dealer 1.
B. $302 per month for 48 months from Dealer 2.
C. $302 per month for 48 months from Paul’s bank.
D. There is not enough information to determine which loanoption will have the lowest monthly payment.
