My Car: 2010 Chrevolet Impala LS

Cost of Car: $7000
Total Car Cost Simple Interest: 7000+(7000 x .06 x 5)= $9100
Total Car Cost Compound Interest: 7000(1+0.06) =$10312.50

I say that Simple Interest is a better financing option because it is a cheaper way to buy a car. There is almost a $1000 dollar difference between Simple Interest and Compound Interest, simple interest being the cheaper one.

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