Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help pls You are in the process of purchasing a new automobile that will cost you $25,000. The dealership is offering you either a $2,000

help pls
image text in transcribed
You are in the process of purchasing a new automobile that will cost you $25,000. The dealership is offering you either a $2,000 rebate (applied toward the purchase price) or 4.8% financing for 60 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 7.5% for 60 months. Should you take the $2,000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 4.8% APR? Finance through your local credit union. You should reject both option A and option B Forgo the rebate and go with the dealership. You may go with either option A or option B because they are equivalent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions