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Truck #2 has a list price of $56,480 and is acquired for a down payment of $7,060 cash and a zero-interest-bearing note with a face
Truck #2 has a list price of $56,480 and is acquired for a down payment of $7,060 cash and a zero-interest-bearing note with a face amount of $49,420. The note is due April 1, 2018. Grouper would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. |
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