Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership

Question:

Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:
1. Pay $35,000 for the car today.
2. Pay $4,000 at the end of each quarter for three years.

Required:
Assuming Denzel uses a of 12% (or 3% quarterly), determine which option gives him the lower cost.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...