Answered

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Suppose that you are thinking about buying a car and have narrowed down your choices to two options.
The new-car option: The new car costs $25,000 and can be financed with a four-year loan at 6.12%.
The used-car option: A three-year old model of the same car costs $17,000 and can be financed with a three-year loan at 7.72%.
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What is the difference in monthly payments between financing the new car and financing the used car? Use PMT
The difference in monthly payments between financing the new car and financing the used car is $
(Round to the nearest cent as needed.)

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