FINANCE QUESTION HELP

massdebater
massdebater

FINANCE QUESTION HELP

Can you guys give me a hand with a finance problem?

You are planning to buy a car worth $20,000. Which of the two deals described below
would you choose, both with a 48-month term?
• the dealer offers to take 10% off the price, and lend you the balance at an APR of
9%, monthly compounding. (3 marks)
• the dealer offers to lend you $20,000 (with no discount) at an APR of 3%,
monthly compounding

idontknow
idontknow

Can I take the 10% off and then pay off the whole loan at the first payment

kizzmybutt
kizzmybutt

The answer is to walk away from the dealer if he can't give you 0% APR and buy a second hand car for $2000.

Deadlyinx
Deadlyinx

Lmao

Methshot
Methshot

Fuck that shit. Get a car for $2000 instead.

But I'd I had to I'd go 3%

Sharpcharm
Sharpcharm

go 3%
lmao you're losing so much money if you pass on the 10% discount

Snarelure
Snarelure

the second one dingus

Emberfire
Emberfire

The goal is to spend as little money as possible
Thinking you need a brand new car
Why not make a saving of $18000 on the spot?

CouchChiller
CouchChiller

WHY THE FUCK DO YOU POST CHILD PORNOGRAPHY!?!?!?!?

JunkTop
JunkTop

actually you save about $200

you dumb fuck

whereismyname
whereismyname

think you better do your math again, user

Lord_Tryzalot
Lord_Tryzalot

Can someone explain the math to me pl0x?

Spamalot
Spamalot

Don't finance a car. Save up and pay cash. If you need to finance something at 9% MONTHLY YOU ARE FUCKING UP

happy_sad
happy_sad

there are people on Veeky Forums who can't recognize incorrect compound interest calculations when they see them

SomethingNew
SomethingNew

do you're own homework

askme
askme

I'm sorry you have shitty credit.

I got 0% APR from Ford Credit by putting 20% down with no credit history period.

iluvmen
iluvmen

show me

idontknow
idontknow

If you have sales tax on cars, like I do, also take that into account. That extra 2k would equal an extra $140 in my state when you go to register it.

lostmypassword
lostmypassword

it's not my job to educate you, shitlord

Poker_Star
Poker_Star

prove me wrong, you can't

Flameblow
Flameblow

you forgot to carry the one, my man

Lord_Tryzalot
Lord_Tryzalot

no, u

Disable AdBlock to view this page

Disable AdBlock to view this page

Confirm your age

This website may contain content of an adult nature. If you are under the age of 18, if such content offends you or if it is illegal to view such content in your community, please EXIT.

Enter Exit

About Privacy

We use cookies to personalize content and ads, to provide social media features and to analyze our traffic. We also share information about your use of our site with our advertising and analytics partners.

Accept Exit