The finance student Harini plans to buy an electric car. A car dealer offers her two payment options. If she is paying cash, the car costs €46,500. If she decides for car financing, she must make payments of €10,000 per year, at the end of each year for a period of 5 years. Interest rates are at 2.53% per year. Harini asks for your advice which alternative she should prefer! Calculate and suggest. b)You have saved €2,222. How long does it take to double your money at an interest rate of 2.22%?

Answer rating: 100% (QA)

a To determine which payment option is more favorable for Harini lets calculate the total cost under ... View the full answer