Roxanne is comparing the monthly payments for a new car at two different car dealerships. Dealership A: The car costs $30,000, and the loan has an annual interest rate of 4.8%.
Dealership B: The car costs $29,800, and the loan has an annual interest rate of 5.4%.
Use the formula to determine the monthly payment for each dealership.
P =
Feli)
1-(1 + i)
Assume that both interest rates are compounded monthly, there is no down payment, and each loan is for 60 months.
For dealership A, the interest rate per month is
%.
For dealership B, the interest rate per month is
The monthly payment for dealership A is
the monthly payment for dealership B.

Step-by-step explanation:

By comparing both the payments we can say that Dealer A is cheaper by $4.50.

Step-by-step explanation:

Dealership A: The car costs $30,000, and the loan has an annual interest rate of 4.8% for 5 years.

The EMI formula is :

Now, p = 30000

r =

n =

Putting values in formula we get;

=>

EMI is = $563.34

Dealership B: The car costs $29,800, and the loan has an annual interest rate of 5.4% for 5 years.

p = 29800

r =

n =

Putting values in formula we get;

=>

EMI = $567.84

By comparing both the payments we can say that Dealer A is cheaper by $4.50.

47.28 or 47.2857143

step-by-step explanation:

you just divide 331 by 7 and you get that answer. ( i think so tho)