You have decided to purchase a p3JLj new automobile with a hybrid-fueled engine and a six-speed transmission.

Question:

You have decided to purchase a p3JLj new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto at 2.9% APR (compounded monthly) and repaid over 48 monthly payments. Alternatively, you can get an instant rebate on the purchase price if you finance the loan balance at an APR of 8.9% (compounded monthly) over 48 months. Determine the amount of the instant rebate that would make you indifferent between the financing plans.
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...