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At a car dealership, you are given two options for financing a new car worth $16,000. Option 1: You can take out a 5 year
At a car dealership, you are given two options for financing a new car worth $16,000. Option 1: You can take out a 5 year loan at 0% APR compounded monthly, or Option 2: You can get $3000 cash back and finance the rest at 4.9% APR compounded monthly for 5 years. Which is the better option for you? Please show work. ps. my answer key says option 2 but the last person who asnwered this said option 1 and I don't think it's correct. Reposting the old question, please show work.
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