You are planning to buy a car. The retail price of the car is $40,000. Fox...

You are planning to buy a car. The retail price of the car is $40,000. Fox Auto is making you the following offer: You pay $4,000 down and then $1,000 a month for next 36 months (3 years). The APR is 4.8 percent (compounded monthly). This offer is equivalent to a $[___] off the retail price (when paid in cash today). Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a $2,534 b $3,347 c $4,412 d $6,534 e $8,412

Expert Solution

Answer is a) $ 2,534

Formulae

jeff jeffy answered 2 years ago

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