The one-time good deal Cash-For-Clunkers program offered by the federal government proved a temporary boon for car
Fantastic news! We've Found the answer you've been seeking!
Question:
- The "one-time good deal" Cash-For-Clunkers program offered by the federal government proved a temporary boon for car dealers. In addition to this program, dealers were eager to add their own incentives. Bill Mitselfik was considering two different deals he could make for his new car. He can finance the purchase price, $25,000, entirely through the dealer at a 2% APR (compounded annually) for 5 years.
- Alternatively, the dealer will give Bill a cash rebate and provide financing at 9% APR (compounded annually) for 5 years. What is the value of the rebate for which Bill would be indifferent between the two financing options? If the rebate is $5,000 is that a good deal.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: