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25.) Assume that you want to buy an Audi for $35,000. You have only $5,000 available for the down-payment and you must finance the rest.

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25.) Assume that you want to buy an Audi for $35,000. You have only $5,000 available for the down-payment and you must finance the rest. A local Credit union is offering you a 3-year car-loan at 6% APR12. Rochester Audi dealer is offering you 3-year financing at 3% APR12. With either loan, you'd be repaying it in equal monthly installments. Another dealer at Bloomfield is offering you a $500 discount off the car price but no financing. Note: there are only two alternatives (Rochester and Bloomfield car dealerships), as you can NOT buy a car from that credit union :) ! (a) Should you buy your car at the Rochester or Bloomfield dealership? (b) What discount ($ amount off the car price) would the Bloomfield dealer need to offer you in order to make you indifferent relatively to the Rochester car+financing deal

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