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Example 3

A car dealer offers 2 different payment options for the purchase of a car. Deal #1: Make a $3000 down payment and finance the car for 48 months with no interest. Deal #2: Finance the car for 60 months, no money down, and pay 5% simple annual interest. Suppose a car has a price of $22,000. How much more is the monthly payment for Deal #2 than for Deal #1?
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit for more information.