Bruce is considering purchasing a car for $10,000. He is thinking about using his savings to make a 20% down payment and then
financing the difference over a 4-year loan.
If he doesn't make the down payment, he'll qualify for an interest rate of 8.0%.
If he makes the down payment, he'll qualify for an interest rate of 7.0%.
Use the amortization table provided to complete the statement. Round to the nearest cent, if necessary.
Rate
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
1 Year
$86.30
$86.53
$86.76
$86.99
$87.22
$87.45
Monthly Payment per $1,000 of Principal
2 Years
3 Years
$44.55
$44.77
$45.00
$45.23
$45.46
$45.68
$30.65
$30.88
$31.11
$31.34
$24.65
$31.80
Making the down payment will lower Bruce's monthly car payment by $
Submit
4 Years
$23.71
$23.95
$24.18
$24.41
$24.65
$24.89
a month.
5 Years
$19.57
$19.80
$20.04
$20.28
$20.52
$20.76
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