Preparing to buy a car that costs 36000 you can pay for the, Ask an Expert

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Preparing to buy a car that costs $36,000. You can pay for the car using an auto loan from the car manufacturer or using money from your home equity line of credit (HELOC). The auto loan charges 2.75% interest per annum. The HELOC charges 3.85% interest per annum but the interest is tax deductible. If your current tax rate is 32%, which source of funds should you use?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91407161

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