Question

Help Please!!!!Jamir has decided that he needs a new car. He has found the model and color he wants for a purchase price of $25,838. To buy the car, he must put 10 percent down, and his loan is for five years with an interest rate of 4.4 percent. His payments are $432.46. To lease the car, he can sign a three-year contract with payments of $290. He needs to provide $1,500 up front to pay initial fees and his first month's payment. His annual mileage cannot exceed 15,000 miles. What are the disadvantages if Jamir decides to purchase the car? Check all that apply.
 He will not get the model he wants.

He will have to come up with a bigger down payment.

His monthly payments will be higher.

 He will have to return the car when he is done making payments.

The purchase price will be higher.

Answer 1

Answer:

He will have to come up with a bigger down payment

His monthly payments will be higher.

If Jamir leases the car, his down payment will be $1500.

If he purchases the car, his down payment will be 10% of purchase price which will be $\frac{10}{100} *25,838 = 2583.80$.

Hence his down payment will be higher if he purchases the car.

If Jamir leases the car, his monthly payments will be $290, as against the monthly payment of $432.46, which is higher.

Answer 2

Yes, the correct answer would be:

He will have to come up with a bigger down payment

His monthly payments will be higher.

I just did the assignment.