Stanley bought a car for $14,900, and he will make monthly payments with
special APR financing of 2.4%, compounded monthly, for 36 months. The usual APR
is 7.2%, compounded monthly. Use this information to answer the following three
questions.
1.
What will Stanley's monthly
payment be?
2.
What would Stanley's monthly
payment have been if he hadn't
received the special APR
financing?
3. Approximately how much money did Stanley save by receiving the special APR financing?