16. (1/2 Points] DETAILS PREVIOUS ANSWERS MY NOTES ASK YOUR TEACHER PRACTICE ANOTH When Interest rates are low, some automobile dealers offer loans at Ox APR, as indicated in a 2010 advertisement by a prominent car dealership, offering zero percent financing or com back dealt on some models Zoro percent racing means the obvious thing that no interest is being charged on the han, so if we borrow $1,200 at o% interest and pay it off over 12 months, our monthly payment will be $1,200/12 - $100 Suppose you are buying a new truck at a price of $20,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer inancing with one of a $2,000 rebate on the chase price. If you take the rebate, you will have to go to the local bank for a loan (of $10,000) at an APR of 6.5%. Should you take the leftanding of the rebate? (Musume you take the deal that saves you the most enoney) deterruing mocht you are over thee of the fan by taking the option you choo (Round your answer to the nearest cont.) X . 16. [1/2 points) DETAILS PREVIOUS ANSWERS MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER When interest rates are low, some automobile dealers offer loans at 0% APR, as indicated in a 2016 advertisement by a prominent car dealership, offering zero percent financing or cash back deals on some models. Zero percent financing means the obvious thing that no interest is being charged on the loan. So if we borrow $1,200 at 0% interest and pay it off over 12 months, our monthly payment will be $1,200/12 = $100. Suppose you are buying a new truck at a price of $20,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer financing with 0% interest, or a $2,000 rebate on the purchase price. If you take the rebate, you will have to go to the local bank for a loan (of $18,000) at an APR of 6.5%. Should you take the dealer financing or the rebate? (Assume you take the deal that saves you the most money.) dealer financing rebate How much would you save over the life of the loan by taking the option you chose? (Round your answer to the nearest cent.) $ X eBook Submit