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There are three forms of payment to buy a car. The first is to buy the...

There are three forms of payment to buy a car. The first is to buy the car in cash at a price of $ 120,000. The second is to pay 60 equal monthly payments of $ 3,164.47 each month, the first one a month after purchase. The third way to acquire the car is by paying 48 equal monthly payments of $ 1,955.00 each, starting to pay a month after making the purchase, and also paying four equal annuities of $ 21, 877.83 at the end of the months 12, 24, 36 and 48. With an annual interest of 24% capitalized monthly, it determines the best form of payment from the economic point of view. a) Perform the corresponding calculations of the three options that allow you to compare total cost. b) Discuss which of the three options is best for the buyer and why.

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Colby Messinger answered 2 years ago
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