You can buy a car that is advertised for $24,000 on the following terms: (a) Pay $24,000
Question:
You can buy a car that is advertised for $24,000 on the following terms:
(a) Pay $24,000 and receive a $2,000 rebate from the manufacturer;
(b) Pay $500 a month for 4 years for total payments of $24,000, implying zero percent financing. Which is the better deal if the interest rate is 1 % per month'?
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a The present value of the payments ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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