Question
#5 Sally wants to buy a Ford Mustang. The MSRP is $26,185. Ford offers a purchase financing plan with no money down and 48 end-of-month
#5
Sally wants to buy a Ford Mustang. The MSRP is $26,185. Ford offers a purchase financing plan with no money down and 48 end-of-month payments of $550. Should she buy the car for cash or takeFord's purchasefinancing? Assume that she has the cash and that she could invest her money and earn at least 4%.
What is the present value of all thepayments?
$
nothing
(Round to the nearestcent.)
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
