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27-05-2024
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Assume you are shopping for a pre-owned car and intend to finance part of the purchase through an installment loan charging 3.75% APR. You want to find the best deal comparing the offers from two different dealers. Your calculation will not include any Trade-in Value, sales taxes, or any other fees. Grab a piece of paper to write out different results, then filll in the blanks with the answers you have calculated

The car you've decided to purchase costs $18,000.
Dealer 1 is offering terms of $3,000 down and 48 monthly payments with a monthly payment of . (Blank)
Dealer 2 is offering terms of $3,500 down and 60 monthly payments with a monthly payment of . (Blank)
If you choose Dealer 1's offer you will pay $ (Blank)as the total cost for the car.
If you choose Dealer 2's offer you will pay $ (Blank)as the total cost for the car.
From a strictly financial perspective, which dealer is offering the better choice? Dealer 1 or Dealer 2?

Round your answers to the nearest whole dollar and enter them without commas or decimals (example, enter 1000, not $1,000.00)

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