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Question 6 (15 points): You are planning to buy a car that costs $48000. Dealer A offers you to buy the car for constant monthly
Question 6 (15 points): You are planning to buy a car that costs $48000. Dealer A offers you to buy the car for constant monthly payments of $2000 which end of two years time-period will add up to $48000. Dealer B requires you to pay $10,000 now followed by installments of $1500 for the next 24 months. If you observe that the market interest rate is 6%, what would be the net cost today of the two options. Which option offers you the cheapest financing (assume monthly compounding in this question)
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