Problem 5: You are buying a car. The one you have choosen to purchase is going to cost you $32,985. Your car salesman has told you that you can purchase this vehicle for $525 per month for 72 months. What interest rate will you be paying? Problem 6: You are not quite sure about the car deal in Problem 5. So the car salesman now tells you that the company is offering a bonus if you buy the car today. You can either choose to get a $2500 discount on the car price, or zero percent financing. Which option is the best deal? Please compute the PMT for both options to find out. Cash back deal Zero financing deal NPER 72 NPER 72 72 1/Y (Rate) ? 1/Y (Rate) 0.38% 0.00% PV 32,985 PV 30485 32985 PMT 525 PMT ? ? 0 0 FV Compounding Periods CPT (Compute) ? FV Compounding Periods CPT (Compute) ? 4.59% $484.76 $458.13