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Please show all work in excel! You're considering buying a new car. The cars list price is $32,000. The dealer has offered you two alternatives
Please show all work in excel!
You're considering buying a new car. The cars list price is $32,000. The dealer has offered you two alternatives for purchasing the car: You can buy the car for $29,000 in cash and get a $3,000 discount in the bargain. Assuming that you have no cash, if you decide to choose this option, you will borrow $29,000 from your bank. Your local bank is willing to give you a car loan at an annual interest rate of 8.2%, compounded monthly (that is, 8.2%/12 per month). . You can buy the car for the list of $32,000. In this case, the dealer is willing to take $10,000 as an initial payment. The remainder of the $22,000 is a "zero-interest loan" to be paid back in equal installments over 48 months. Decide how to finance the car: take the bank loan so you can pay cash to the dealer or take the zero-interest loan with the dealer Step by Step Solution
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