Question
In: Finance
Finance: You pick out a new car and the dealer is offering 0% interest for 60...
Finance:
|
You pick out a new car and the dealer is offering 0% interest for 60 months or a $2,500 cash-back bonus. Your negotiated price is $16,000. Your credit union is currently offering a special 2.6% for 60-month car loans. |
| a. | What will be your monthly car payment if you accept the 0% interest offer? |
| Monthly car payment: $266.60 | $ |
| b. |
What will be your monthly car payment if you accept the $2,500 cash-back bonus and finance the purchase at your credit union? |
| Monthly car payment: $195.50 | $ |
| c. |
Should you accept the 0% interest offer or the cash-back bonus? |
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Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.
jeff jeffy answered 6 months agoRelated Solutions
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