Schmidt Wheels offers financing for a new $25,000 car where you make a $2,000 down payment now and then pay $380 a month for 6 years. Don's Auto nearby offers you the same car for $24,000 or $1,000 off. If the relevant interest rate is 6 percent compounded monthly which dealer is offering you a better deal? What if the interest rate is 4 percent per year?

Answer rating: 100% (QA)

Dealer A Schmidt Wheels Down Payment 2000 Monthly Payment 380 Total Cost 25000 Dealer B Dons A... View the full answer