Interest Rates and Car Loans?
Here is the problem: for the last four years you have saved $125 per month which is in a savings acct earning 3% interest. You need a CAR and you found a good Honda that will coast exactly what you have in your savings acct… How much is in the savings account?
We don't do your homework for you.
But I will tell you the answer - we don't know because we don't know how interest is being calculated.
3% compounded? Annually? Monthly? Daily?
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