Problemyou want to purchase a new car the price of the car, Ask an Expert

Finance

Problem:

You want to purchase a new car. The price of the car is $24,035. The dealer is currently offering a special promotion: You can choose a $1500 rebate up front or 0% financing for the first 36 months and 6% financing for the remaining 24 months of your loan.

Required:

Question: Which is the better deal, the $1500 rebate or the 0% financing for the first three years followed by 6% financing for the last two years of the loan? Justify your answer by computing your monthly payments over 60 months under each of the two options.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91175086

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