Time Value of Money Questions

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. Cashback deal Zero financing deal NPER I/Y (Rate) NPER I/Y (Rate) Note: For a Loon the Price is Nisted as PV Because the bank gives you the money in the beginning FV is because the loan will be paid off at the end PV PMT Compwdi Periods Compowdig Periods CPT (Compute) ? CPT (Compute) ? Remember, Interest rates are ALWAYS stated as yearly rates. See "Compounding More Frequently" on the General Information Tab