Question: Three purchase plans are available for a new car: Plan A: $5000 cash immediately Plan B: $1500 down now and 36 monthly payments of $116.25

Three purchase plans are available for a new car:

Plan A: $5000 cash immediately Plan B: $1500 down now and 36 monthly payments of $116.25 Plan C: $1000 down now and 48 monthly payments of $120.50

If the customer expects to keep the car for 5 years and his cost of money is 6%, compounded monthly, which payment option plan should he choose?

		Plan A
		Plan B
		Plan C
		Makes no difference, all 3 plans are equal

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