The Miami Red car dealer wants to sell you a car for $67,000. You are told that

Question:

The Miami Red car wants to sell you a car for $67,000. You are told that you can pay in five equal annual payments that start in one year and include interest at 5.5%. You can get the same car at Green & White Motors Corp for $59,100 cash today. If you buy the car at Green & White, you will have to get a five-year loan from the bank at 8.25%. Which is the better deal and why? What information in this problem is unnecessary? Show calculations please.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...