GED Math… What’s the Best Deal?

Maybe pullin’ out the calculator’s the best way to figure this one out. Here’s the deal: I gotta buy me a sweet ‘Vette for $27,599. And I can pick one of two deals:

1. $3,000 bucks off and 4.9% interest for 60 months
2. Full price and 1.9% interest for 48 months

Here’s the formula:

(Price) x (Interest) x (Years) = total interest

So here’s how to figure the interest for the two deals… see how to get number of years, I divide months by 12? 12 months in a year…

1. ($27,599 – $3,000) x 4.9% x (60/12)
2. $27,599 x 1.9% x (48/12)

Now, it’s just doin’ the math, right… let’s start with the first one… 27 minus 3, is 24. And 60 months are 5 years. Don’t hardly need to know the math.

1. $24,599 x 4.9% x 5

On the second on, all you gotta do is divide 48 by 12… four years.

1. $24,599 x 4.9% x 5
2. $27,599 x 1.9% x 4

You can break out a calculator now to figure this one out….

1. $6,026.755
2. $2,097.524

Damn, the second one’s got like $4,000 less interest. The first one, though, the price is $3,000 cheaper. So if I go with the second deal, I’m payin’ $1,000 less. On the downside, the payments are higher… gotta think this one through….