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Claudia is going to buy a used car for $9,500. She can finance it at the car dealership at 11% interest for 3 years, or she can finance it at the bank at 7% interest for 6 years. What is the difference in interest cost between the car dealer loan and the bank loan?

If she takes the loan from the car dealership, Claudia will have to repay $_____ less in interest than if she took the loan from the bank.

User Reki
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2 Answers

5 votes
$9500 ÷ 100 = $95

$95 Is 1%

$95 * 11 = $1045

$1045 * 3 = $3135

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$95 * 7 = $665

$665 * 6 = $3990

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$3990 - $3135 = $855
User JWCS
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I’m gonna send you a picture of the one ☝️ I don’t want you to
User Sharath Chandra
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