Mandy is interested in purchasing a new automobile for personal use The dealer is offering a special 1 9 interest rate on new cars Last fall, she opened a home equity line of credit with her bank If she uses the line of credit to purchase the car, the interest rate will be 7 95 Write a letter to Ma...

Mandy should finance the purchase of her new automobile through the dealer instead of the ba ...

Mandy is interested in purchasing a new automobile for personal use. The dealer is offering a special

Question:

Mandy is interested in purchasing a new automobile for personal use. The is offering a special 1.9% interest rate on new cars. Last fall, she opened a home equity with her bank. If she uses the to purchase the car, the interest rate will be 7.95%. Write a letter to Mandy explaining whether she should finance the purchase of her car through the or use her home equity Assume Mandy is in the 35% tax bracket.

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... Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...