Introduction to Personal Finance Unit 4 Project Learning Goals: Understand how to shop and determine borrowing costs for large purchases. 1. Alejandra wants to buy a new Ford Truck. She sees the following ad a. She has negotiated a sales price of S36,585 and she has a 55.000 down payment. She is eligible for the full $10,000 cash rebate. Her bank has pre-approved her for a 72-month car loan at 3.24% Assuming Alejandra wants the cheapest overall price, which option should she take? Should she take the 0% financing offer for 66 months from the dealer, or should she borrow the money from her bank at 3.24% to pay off the dealer and receive the $10,000 cash rebate? (show your work) Sales N 1 PV PMT Totally b. Now suppose she is only able to get $2,000 cash back (with the 3.24% financing from her bank). Does this change her decision? (show your work) The Sleep Sales Down Cash Rebate N 1 Total Total Cont c. Suppose Alejandra is able to arrange financing for 8.69% instead of 3.24%. The cash rebate remains at $10,000. Does this change her decision? (show your work) Tank Opcoe Dealer Optic Scexploat: Sales