Homework 1: Cheap Financing and Rebate SALE! SALE! 7.59%* FINANCING OR $500 REBATE only $61,500 *7.59% APR on 36 month loan. Suppose that TF Bank is offering a loan at a 10% interest rate. Should you choose (i) the 7.59% financing offer on the advertisement above and pay $61,500 over 36 months or (ii) borrow the money from the bank at 10% and go for the $500 rebate, paying $61,000 upfront? Saffi (Session 1) What is a Company Worth? 24/26