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

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Advance Math

There are three forms of payment to buy a car. The first is tobuy the car in cash at a price of $ 120,000. The second is to pay60 equal monthly payments of $ 3,164.47 each month, the first one amonth after purchase. The third way to acquire the car is by paying48 equal monthly payments of $ 1,955.00 each, starting to pay amonth after making the purchase, and also paying four equalannuities of $ 21, 877.83 at the end of the months 12, 24, 36 and48. With an annual interest of 24% capitalized monthly, itdetermines the best form of payment from the economic point ofview. a) Perform the corresponding calculations of the threeoptions that allow you to compare total cost. b) Discuss which ofthe three options is best for the buyer and why.

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