Ford Motor Company's current incentives include 3.9 percent APR financing for 84 months or $1, 500 cash back on a Mustang. Let's assume Suzie Student wants to buy the premium Mustang convertible, which costs $21,000, and she has no down payment other than the cash back from Ford. If she chooses the S1, 500 cash back, Suzie can borrow from the VTech Credit Union at 5.9 percent APR for 84 months (Suzie's credit isn't as good as Prof. Finance). What will Suzie Student's monthly payment be under each option? Which option should she choose?
Ford Motor Company's current incentives include 3.9 percent APR financing for 84 months or $1, 500 cash back on a Mustang. Let's assume Suzie Student wants to buy the premium Mustang convertible, which costs $21,000, and she has no down payment other than the cash back from Ford. If she chooses the S1, 500 cash back, Suzie can borrow from the VTech Credit Union at 5.9 percent APR for 84 months (Suzie's credit isn't as good as Prof. Finance). What will Suzie Student's monthly payment be under each option? Which option should she choose?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ford Motor Company's current incentives include 3.9 percent APR financing for 84 months or $1, 500 cash back on a Mustang. Let's assume Suzie Student wants to buy the premium Mustang convertible, which costs $21,000, and she has no down payment other than the cash back from Ford. If she chooses the S1, 500 cash back, Suzie can borrow from the VTech Credit Union at 5.9 percent APR for 84 months (Suzie's credit isn't as good as Prof. Finance). What will Suzie Student's monthly payment be under each option? Which option should she choose?
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