2. Rebate Versus Low Interest Rate. Kyle Parker of Fayetteville, Arkansas, has been shopping for a new

Question:

2. Rebate Versus Low Interest Rate. Kyle Parker of Fayetteville, Arkansas, has been shopping for a new car for several weeks. So far, he has negotiated a price of $27,000 on a model that carries a choice of a $2500 rebate or dealer fi nancing at 2 percent APR. The dealer loan would require a $1000 down payment and a monthly payment of $564 for 48 months. Kyle has also arranged for a loan from his bank with a 7 percent APR. Use the Decision-Making Worksheet on page 224 to advise Kyle about whether he should use the dealer fi nancing or take the rebate and use the fi nancing from the bank.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Personal Finance

ISBN: 9781439039021

10th Edition

Authors: E Thomas Garman, Raymond E Forgue

Question Posted: