Larry wants to purchase a new car for personal use. He anticipates financing $40,000 of the purchase

Question:

Larry wants to purchase a new car for personal use. He anticipates financing $40,000 of the purchase price. The car is offering a special 35 percent interest rate on new cars. Alternatively, Larry could use a home equity loan with an interest rate of 5 percent. Larry is in the 33 percent marginal tax bracket. Should Larry finance the car through the or through a home equity loan?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...