How much more interest will you pay over time if you buy


You are trying to decide between a new car that will cost $23,000 and a used one that will cost $15,000. You have $5,000 which will be the down payment for whichever car you buy. Assume that you can borrow the difference between your down payment and purchase price at 5% annual interest rate on a 5 year loan. How much more interest will you pay over time if you buy the new car instead of the used one? Assume monthly payments in your calculations.

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Financial Management: How much more interest will you pay over time if you buy
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