Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Charles would like to buy a new car that costs $32 000. The dealership offers to finance the car at 2.4%/a compounded monthly for five years with monthly payments. The dealer will reduce the selling price by$3000 if Charles pays cash. Charles can get a loan from his bank at 5.4%/a compounded monthly. Which is the best way to buy the car? Justify your answer with calculations.

Sagot :

okpalawalter8

Charles would like to buy a new car that costs $32 000. The dealership offers to finance the car at 2.4%/a, it's best for Charles loans from the bank to buy car.

Which is the best way to buy a car?

Generally, the equation for the monthly loan payment is mathematically given as

[tex]R=\frac{\frac{iP}{N}}{1-(\frac{1}{N})^{NY}}[/tex]

Therefore

[tex]R=\frac{\frac{0.024*32000}{12}}{1-(\frac{0.024}{12}+1)^{-12*5}}[/tex]

R=566.51

Hence the total payment is

T=R*N*Y

T=33990.34

By taking a loan of 29000, and applying the equation

T'=33155.77

In conclusion, it is best for Charles loans from the bank to buy a car.

Read more about loan

https://brainly.com/question/11794123

#SPJ1

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.