3 options for purchasing a car

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Everydaylearner

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Hey guys so I have a question on this problem. I'm not quite sure where I went wrong. I'm approximately $40 off on both answers. The only thing I could think of is possibly applying TVM to the down payment in the option 2 but how? Would I use PV or FV formula. Same for Option 3 (this one confuses me because it says zero interest loan). I divided 15000 by 36 to get the 416.6667 then used the PV formula to get the net cost. Any help would be awesome.
 

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Option 2, check your math here again:
Screen Shot 2022-01-24 at 9.02.56 AM.png
For option 3, the problem states 0% interest, why are you using 8%?
 
I had a feeling, I've tried a few variations to the problem and I couldn't get close to the answers on the bottom of the page. I just assumed I wasn't doing something correctly on the third option, so I added the PV formula. That means the Net cost for option 3 would be $15000. So, number 2 is the cheapest option but when I put in the number it says it's incorrect. wow, I had an additional +175 in the formula so it should be $13119.86. I've used the net cost as an answer too and it still says it's wrong.
 
Everydaylearner said:
I had a feeling, I've tried a few variations to the problem and I couldn't get close to the answers on the bottom of the page. I just assumed I wasn't doing something correctly on the third option, so I added the PV formula. That means the Net cost for option 3 would be $15000. So, number 2 is the cheapest option but when I put in the number it says it's incorrect. wow, I had an additional +175 in the formula so it should be $13119.86. I've used the net cost as an answer too and it still says it's wrong.
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I don't see how they got those answers, besides the arithmetic error in option 2 everything else is correct. I would like to see the original question. There might be something that you missed.
 
BigBeachBanana said:
I don't see how they got those answers, besides the arithmetic error in option 2 everything else is correct. I would like to see the original question. There might be something that you missed.
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For sure, here's a pic of the original question.
 

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Duuude It is in a range. The right answer for me was rounded $13,120. Thanks Banana ?! I can't believe it. Lol
 
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