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7-42 A new car dealer advertises financing at 0% inter- est over 4 years with monthly payments or a $3000 rebate if you pay cash. (a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer? (b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer? (c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?

7-42 A new car dealer advertises financing at 0% inter- est over 4 years with monthly payments or a $3000 rebate if you pay cash. (a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer? (b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer? (c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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7-42 A new car dealer advertises financing at 0% inter- A est over 4 years with monthly payments or a $3000 rebate if you pay cash. (a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer? (b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer? (c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?
Transcribed Image Text:7-42 A new car dealer advertises financing at 0% inter- A est over 4 years with monthly payments or a $3000 rebate if you pay cash. (a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer? (b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer? (c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?
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