Bedroom Talk
Math homework question help?
Rex just moved and needs to furnish his new house. He finds a full set of living room, dining room, and bedroom furniture for $5350. The dealer offers him 0% financing for 36 months or a $425 discount with 6.3% financing for 36 months. Which option should he choose and why?
Public Comments
- Determine the total cost - at 0% financing the total cost would be $5350, assuming it is paid off in time with no late fees etc. $425 discount will bring down the cost to $4925 and the simple interst in the first year itself would be $310.28 So eventually you will end up paying more over the time period of 36 months. Therefore 0% deal is better.
- this is a easy problem easy to set up ill show you the proper way first $5350*.063=337.05+5350=5678.05 - 425.00 ------------- 5262.05 then write this 5262.05 5350 circle the lowest
- here is a website that calculates loans...just put in the figures and see what you get....multiply the monthly payment by 36 months and you will see what you will have paid total! :) http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
