Question

Figure out the costs of buying the two cars listed below by filling in the blanks in the table. You can pay a 10 percent down payment, and your credit history is good enough to get a five-year loan with an interest rate of 5 percent.

Can you help fill out the table, please!?!?!

Answer 1

Using the given info that you can pay 10% as downpayment for a car and is qualified for a 5-year loan with 5% APR, below are the cost related to each type of car.

New Honda CRV

Downpayment: $2,398
Amount to borrow: $21,582
Monthly payment: $449.625
Total amount of payments: $26,977.50
Total interest paid: $5,395.50

Used Ford Taurus

Downpayment: $1,035.50
Amount to borrow: $9,319.50
Monthly payment: $194.15625
Total amount of payments: $11,649.375
Total interest paid: $2,329.875