Answer:
It would be bettter to make an agreement with the car dealer for the 32,000 in 4 years.
Explanation:
We will y comparing the value of the loan in 4 years;¿ with the 32,000 in for years option:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $ 29,000.00
time 4 years
rate 3% = 3/100 = 0.030
[tex]29000 \: (1+ 0.03)^{4} = Amount[/tex]
Amount $ 32,639.76
Which is higher than the 32,000 option. Therefore, the loan option is more expensive than the financing through the car dealer.
It is a better option to make deal with the car seller.
