2. Suppose you are buying a car that costs $18,000. The dealer offers you a payment plan that consists of a $0 down-payment with annual payments of $3,000 for the next 6 years at a 7% interest rate. Another dealer has offered you the same car for $18,750, with a payment plan that consists of making a $3,750 down-payment with annual payments of $3,000 for the next 5 years at a 7% interest rate. Which dealer is offering the better deal?
Answer:
2. Suppose you are buying a car that costs $18,000. The dealer offers you a payment plan that consists of a $0 down-payment with annual payments of $3,000 for the next 6 years at a 7% interest rate. Another dealer has offered you the same car for $18,750, with a payment plan that consists of making a $3,750 down-payment with annual payments of $3,000 for the next 5 years at a 7% interest rate. Which dealer is offering the better deal?
Answer:
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