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CHOOSE A FINANCING OPTION

Using a spreadsheet (like Excel, for example) evaluate your options for a $12,000 car. Compare the payments (use the pmt function in Excel), the total amount of interest, and the total you'll pay for the car under the following four options:

3 years at 0 percent interest

2 years at 1.99 percent annual percent rate (APR)

4 years at 5 percent APR

6 years at 6 percent APR

What other considerations would you take into account if you were going to buy a new car?

Are there considerations other than the interest rate and the other parts that can be calculated? What are they? How is a car different from other purchases, such as CDs or TV sets or computers?

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M92066098

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