Question
Toyota is offering 36-month $0 down, 2.45% APR (Annual Percentage Rate) financing on a car you have decided to buy. That stated price for
Toyota is offering "36-month $0 down, 2.45% APR (Annual Percentage Rate)" financing on a car you have decided to buy. That stated price for the car is $35,000. What are the monthly payments required for Toyota's special-financing deal? You are to receive $80 payment indefinitely. The market rate of interest for these types of payments is 8%. What should be the price you would pay for this stream of cash flows?
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
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