Finance:

You pick out a new car and the dealer is offering 0% interest for 60 months or a $2,500 cash-back bonus. Your negotiated price is $16,000. Your credit union is currently offering a special 2.6% for 60-month car loans.

a.	What will be your monthly car payment if you accept the 0% interest offer?

Monthly car payment: $266.60

$

b.	What will be your monthly car payment if you accept the $2,500 cash-back bonus and finance the purchase at your credit union?

Monthly car payment: $195.50

$

c.

Should you accept the 0% interest offer or the cash-back bonus?

	Answer: Cash-back bonus
	0% interest rate offer