Business, 19.12.2019 03:31 animationfusion
Scott wants to purchase a toyota rav4 xle. the model he wants is available for $26,789. scott has saved $4,000 for a down payment, and the dealer has offered $3,500 for his trade-in. he is considering three financing options.
toyota’s financial department is offering 0% interest for three years
scott’s credit union is offering 1.98% compounded monthly for four years
his bank is offering 2.97% compounded monthly for five years
(a) what would scott’s monthly loan payment be for each option?
(b) what total amount of interest would scott pay for each option?
(c) describe the advantages and disadvantages of each financing option.
(d) if you were scott, which of these three financing options would you use and why?
show work for c & d
Answers: 2
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