Question
A car dealership offers loans to finance the purchase of a new car. As a special offer, they give customers of a particular $21600 car
A car dealership offers loans to finance the purchase of a new car. As a special offer, they give customers of a particular $21600 car the choice between repaying the full amount monthly over 3 years at 0% interest rate, or receiving an immediate cash rebate of $X. If the time value of money has a nominal interest rate of 6% compounded monthly, what should the rebate be to make the two options worth the same value?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
