Paul is in the market for a used car. He has found the same sports car...
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Paul is in the market for a used car. He has found the samesports car at two different dealerships and is now consideringwhich dealer he should purchase the car from. Dealer 1 requiresPaul to get the loan through their lending department. Dealer 1 hastold Paul that because they do their own financing, they can getPaul 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 carfor $13200. Dealer 2 has told Paul he can use their financing orget his own lender, so Paul talked with his bank and learned thathe can get a 4 year car loan for 4.7% APR. Dealer 2 has alsooffered 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 loanoption will have the lowest monthly payment.
Paul is in the market for a used car. He has found the samesports car at two different dealerships and is now consideringwhich dealer he should purchase the car from. Dealer 1 requiresPaul to get the loan through their lending department. Dealer 1 hastold Paul that because they do their own financing, they can getPaul 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 carfor $13200. Dealer 2 has told Paul he can use their financing orget his own lender, so Paul talked with his bank and learned thathe can get a 4 year car loan for 4.7% APR. Dealer 2 has alsooffered 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 loanoption will have the lowest monthly payment.
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