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please fill out the table, thank you! ate.edu/courses/72715/assignments/1204529 4. Rebate Versus Low Interest Rate. Kyle Parker of Concord, New Hampshire, has been shopping for a
please fill out the table, thank you! ate.edu/courses/72715/assignments/1204529 4. Rebate Versus Low Interest Rate. Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $34,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $578 for 60 months. Kyle has also arranged for a loan from the bank with a 5 percent APR. Advise Kyle about whether he should use the dealer financing or take the rebate and get financing from the bank. $2,500 rebate dealer financing N 1/Y PV PMT (compute) FV Total payments (60 x PMT) Total financing costs (Total payments - PV) Financial Planning Cases Case 1. The Johnsons Decide to Buy a Car. After several years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry ate.edu/courses/72715/assignments/1204529 4. Rebate Versus Low Interest Rate. Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $34,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $578 for 60 months. Kyle has also arranged for a loan from the bank with a 5 percent APR. Advise Kyle about whether he should use the dealer financing or take the rebate and get financing from the bank. $2,500 rebate dealer financing N 1/Y PV PMT (compute) FV Total payments (60 x PMT) Total financing costs (Total payments - PV) Financial Planning Cases Case 1. The Johnsons Decide to Buy a Car. After several years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry
please fill out the table, thank you!
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