Cedric went to the dealership to buy a new vehicle. The dealership offered him two options: either he can pay $12,500.80 through a 18-month financing from the dealership at the rate of 1%

compounded monthly, or else he could get $732.76 cash back if he got financing from the bank.

At what rate (nominal rate compounded monthly) would the bank have to offer him a same period loan in order to make both options equally affordable? In both cases payments are made at the

end of the period. Assume that if the cash-back option is taken that the cash is applied immediately to the purchase price of the vehicle before financing. Note: Please make sure your final

answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56%

Nominal rate = ?

Cedric went to the dealership to buy a new vehicle. The dealership offered him two options there can w $12.500.00 ought to the heat of compounded monthly, or else he could get 5732.75 cashback if he got financing from the bank At what rate (nominal rate compounded mont) would the bank have to offer him a same period an order to make on options est in cases parents madrat end of the period. Assume that if the cash-back option is taken that the cash is applied immediately to the purchase vice of the best come your answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.30 Nominal rate = 0.00 %