Calculate which saves you more in total interest on your vehicle loan: financing at one percentage point lower for the APR versus increasing the down payment by $1500. Use the following original assumptions: (vehicle sale price = $9,800, sale tax % = 5%, down payment = $3500, APR compounded monthly = 7.5%, years = 5).Question 5 options:A) You save more by increasing the down payment by $1500.B) You save more by financing with an APR that is one percentage point lower than the original.
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