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Problem 6 : You are not quite sure about the car deal in Problem 5 . So the car salesman now tells you that the

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.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?
Note: For a Loan the Price is listed as PV
Because the bank gives you the money in the beginning
FVis 0, because the loan will be paid off at the end
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.
Remember, interest rates are ALWAYS stated as yeariy rates.
See "Compounding More Frequently" on the General Information Tab
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