Mr. Izzo's Math Classes - Mt. Sinai High School
Loan Term?364860Loan Rate0%27.7820.8316.674%29.5222.5718.427%30.8823.9519.80You are purchasing a new car. You have agreed with the salesperson on a price of $29,000Your bank is offering you a loan at 4% for 48 Months.The salesperson is pressuring you to take a loan from the dealer. He says that even though the interest rate is 7% from the dealer, since it is a 60 month loan you will save over $50 per month on the monthly payment.Is the salesman correct about the monthly payment? Are there any disadvantages to agreeing to the dealer’s loan? Find the differences over the life of each loan.Why does the salesperson care which loan you decide on? ................
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