Question
In: Finance
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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Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
As nothing was mentioned excel is used.
jeff jeffy answered 5 months agoRelated Solutions
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