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You have been presented with two financing options for a $26 000 new vehicle. Option 1: One company is offering 0% financing. Option 2: Another

You have been presented with two financing options for a $26 000 new vehicle.

Option 1: One company is offering 0% financing.

Option 2: Another company is offering $2500 discount with 5.9% financing.

You plan on paying bi-weekly payments to pay off the loan.

Which company would you select if you planned on financing the loan over 4 years? Explain. Hint: Use a TVM solver for option 2.

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