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Chrysler is offering a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay cash on a car purchase. The
Chrysler is offering a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay "cash" on a car purchase. The stated price is $25,869. If you can obtain bank financing at 5.38% APR (monthly compounding), what would be the implied monthly loan payments if use your bank for financing and thus drop the price by the $2000 cash rebate? Assume 48 month term for the bank loan also. Answer to 2 decimal places
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