You have just purchased an automobile for $15,000 and will be financing it at 12 percent interest compounded monthly for 5 years. Which of the following is correct? Because of the time value of money, the car will cost you less than $15,000. With interest, the automobile will cost you more than $15,000. Even though the interest rate is 12%, it is impossible to know whether the car will cost more or less than $15,000. Because of the time value of money, the car will cost you exactly $15,000