You are buying a used car for $24,000. Your down payment is $2,500 and you are financing
Fantastic news! We've Found the answer you've been seeking!
Question:
You are buying a used car for $24,000. Your down payment is $2,500 and you are financing the remaining $21,500. The car dealer is offering two choices for financing:
Loan 1: A 4-year loan with an annual interest rate of 6% with monthly payments.
Loan 2: A 4-year loan with an annual rate of 9.5% and a $2,000 cash rebate with monthly payments.
Which one would you select?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
Posted Date: