You have $5,000 down payment on a $20,000 car. The dealer offers you the following two options:
(a) paying the balance with end-of-month payments over the next five years at %
(b) a reduction of $1000 in the price of the car, the same down payment of $5,000, and bank financing of the balance after down payment, over 5 years with end-of-month payments at 12%
Which option is better and why?
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You have $5,000 down payment on a $20,000 car. The dealer offers you the following two...
You have $5,000 down payment on a $20,000 car. The dealer offers you the following two options: (a) paying the balance with end-of-month payments over the next five years at ?^(12) = 9%. (b) a reduction of $1000 in the price of the car, the same down payment of $5,000, and bank financing of the balance after down payment, over 5 years with end-of- month payments at ?^(12) = 12%. Which option is better and why? (DO NOT USE EXCEL)
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You need a new car and the dealer has offered you a price of $20,000, with the following payment options: (a) pay cash and receive a $2,000 rebate, or (b) pay a $5,000 down payment and finance the rest with a 0% APR loan over 30 months. But having just quit your job and started an MBA program, you are in debt and you expect to be in debt for at least the next 2 years. You plan to use...
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