Latoya is taking out an amortized loan for $34,000 to buy a new car and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the car loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) An online lending company has offered her a 6-year car loan at an annual interest rate of 9.4%. Find the monthly payment. (b) Her credit union has offered her a 5-year car loan at an annual interest rate of 9.2%. Find the monthly payment. $ (c) Suppose Latoya pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Online lending company S The total amount paid would be $ less than to the credit union. Continue Credit union The total amount paid would be less than to the online lending company. hp X
Latoya is taking out an amortized loan for $34,000 to buy a new car and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the car loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) An online lending company has offered her a 6-year car loan at an annual interest rate of 9.4%. Find the monthly payment. (b) Her credit union has offered her a 5-year car loan at an annual interest rate of 9.2%. Find the monthly payment. $ (c) Suppose Latoya pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Online lending company S The total amount paid would be $ less than to the credit union. Continue Credit union The total amount paid would be less than to the online lending company. hp X
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Transcribed Image Text:Latoya is taking out an amortized loan for $34,000 to buy a new car and is deciding between the offers from two lenders.
She wants to know which one would be the better deal over the life of the car loan, and by how much.
Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.
If necessary, refer to the list of financial formulas.
(a) An online lending company has offered her a 6-year car loan at an annual interest rate
of 9.4%. Find the monthly payment.
(b) Her credit union has offered her a 5-year car loan at an annual interest rate of 9.2%.
Find the monthly payment.
$
(c) Suppose Latoya pays the monthly payment each month for the full term. Which lender's
car loan would have the lowest total amount to pay off, and by how much?
Online lending company
S
The total amount paid would be $ less than to the credit union.
Continue
Credit union
The total amount paid would be less than to the online lending company.
hp
X
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