Refinancing a car problem

[Everydaylearner]

Not sure what I did wrong here. I had to redo the problem with different numbers and I was way off the second time. Can anybody tell me where I went wrong?

 

[BigBeachBanana]

Are the payments due at the beginning of each month or the end of each month?

 

[Everydaylearner]

Are the payments due at the beginning of each month or the end of each month?

It doesn't say but I assume at the end.

 

[BigBeachBanana]

I'm not sure what your question is. Everything is correct up to the last line.

 

[Everydaylearner]

I'm not sure what your question is. Everything is correct up to the last line.

That's what I thought. But, the answer I got was 138.31 but the actual right answer is 138.69. I was looking for help in finding the discrepancy.

 

[BigBeachBanana]

That's what I thought. But, the answer I got was 138.31 but the actual right answer is 138.69. I was looking for help in finding the discrepancy.

What is 138.31 represent? What is the actual question that is asking you to find?

 

[Everydaylearner]

What is 138.31 represent? What is the actual question that is asking you to find?

The 138.31 represents the PV amount of money cole would lose if he chose to refinance. The question is..... Given all this information, should Cole refinance? How much does he gain/lose if he does? No he shouldn't because he'll lose the 138.69

 

[BigBeachBanana]

I'm getting the same answer with a calculator 138.31. The discrepancies may be caused by rounding intermediate steps.