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You are considering buying a car ( sticker price of $ 4 3 , 0 0 0 ) but need financing. The car dealership has
You are considering buying a car sticker price of $ but need financing. The car dealership has offered you two loan options: Loan A requires a $ downpayment with the remainder financed over years with monthly payments based on a contractual rate of interest of ; Loan B requires no downpayment with the balance financed at zero percent over years with monthly payments. If you opt for Loan A you are eligible for an immediate $ rebate on the car; no rebate is offered on the zero percent financing deal.
The market rate for the r Q How much value do you destroy with Loan BDont round interim calculations
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