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
Can I take the 10% off and then pay off the whole loan at the first payment
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.
Lmao
Fuck that shit. Get a car for $2000 instead.
But I'd I had to I'd go 3%
>go 3%
lmao you're losing so much money if you pass on the 10% discount
the second one dingus
>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?
WHY THE FUCK DO YOU POST CHILD PORNOGRAPHY!?!?!?!?
actually you save about $200
you dumb fuck
think you better do your math again, user
...
Can someone explain the math to me pl0x?
Don't finance a car. Save up and pay cash. If you need to finance something at 9% MONTHLY YOU ARE FUCKING UP
>there are people on Veeky Forums who can't recognize incorrect compound interest calculations when they see them
do you're own homework
I'm sorry you have shitty credit.
I got 0% APR from Ford Credit by putting 20% down with no credit history period.
show me
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.
it's not my job to educate you, shitlord
prove me wrong, you can't
you forgot to carry the one, my man
no, u