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Mia is buying a used trailer for $5000 on credit. She plans to travel
through the Rockies over the summer. She can afford payments of
$200 each month and is considering these two options:
•
The dealership credit card at 15.8%, compounded daily, and
an immediate rebate of 2.4% off her first purchase
•
A bank loan at 9.8%, compounded monthly
a)
How much would Mia end up paying, in total, with each option?
b)
How much interest would she pay for each option?
c)
How long will it take her to pay off the balance for each option
through the Rockies over the summer. She can afford payments of
$200 each month and is considering these two options:
•
The dealership credit card at 15.8%, compounded daily, and
an immediate rebate of 2.4% off her first purchase
•
A bank loan at 9.8%, compounded monthly
a)
How much would Mia end up paying, in total, with each option?
b)
How much interest would she pay for each option?
c)
How long will it take her to pay off the balance for each option