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Mallory wants to purchase new car that lists for $33,000. The manufacturer currently offers two incentive...

Mallory wants to purchase new car that lists for $33,000. The manufacturer currently offers two incentive programs. Mallory may finance the full price of the car through the manufacturer at 0% for 5 years. Alternatively, she may arrange her own financing and receive a $5,000 discount off the price of the car. Mallory’s bank will finance the car at 8.0 percent for 5 years. Which financing option should Mallory choose?

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago
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