Question
Tayna wants to buy a $30,000 car. She has three options: Plan A: Pay $30,000 in cash for the car today Plan B: Pay $630
Tayna wants to buy a $30,000 car. She has three options: Plan A: Pay $30,000 in cash for the car today Plan B: Pay $630 per month for 5 years, the first payment starts exactly one month from today. Plan C: Pay $3500 down payment today and then pay $550 per month for 5 years with the first payment due exactly one month from today. Assuming an interest rate of 8.5% p.a., all else constant, which of the following options should Tanya choose?
a. Plan A b. Plan B c. Plan C d. All three options are the same e. There is not enough information provided to answer this question.
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