Suppose that you are thinking about buying a car and have

Last updated: 7/14/2022

Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $29,000 and can be financed with a four-year loan at 5.73%. The used-car option: A three-year old model of the same car costs $14,000 and can be financed with a four-year loan at 7.26%.