Paul is in the market for a used car. He has found the same sports car...

Paul is in the market for a used car. He has found the same sports car at two different dealerships and is now considering which dealer he should purchase the car from. Dealer 1 requires Paul to get the loan through their lending department. Dealer 1 has told Paul that because they do their own financing, they can get Paul the very best loan possible and Paul will only have to pay $315 per month for 48 months (4 years). Dealer 2 is selling the car for $13200. Dealer 2 has told Paul he can use their financing or get his own lender, so Paul talked with his bank and learned that he can get a 4 year car loan for 4.7% APR. Dealer 2 has also offered Paul a 4 year loan for 5.7%. Based on these loan options, what is Paul’s lowest monthly loan payment option?

A. $315 per month for 48 months from Dealer 1.

B. $302 per month for 48 months from Dealer 2.

C. $302 per month for 48 months from Paul’s bank.

D. There is not enough information to determine which loan option will have the lowest monthly payment.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

jeff jeffy answered 3 weeks ago

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