Incentive A is $4000 off the price of the car, followed by a five-year loan at 5.46%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT=- The difference in monthly payments between the two offers is $ ☐ . Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. OA. Incentive A is the better deal. payment. The dealer is offering you between two centives. A
Incentive A is $4000 off the price of the car, followed by a five-year loan at 5.46%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT=- The difference in monthly payments between the two offers is $ ☐ . Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. OA. Incentive A is the better deal. payment. The dealer is offering you between two centives. A
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
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am. 114.
Transcribed Image Text:Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved $12,000 for a down payment. The dealer is offering you a choice between two incentives.
Incentive A is $4000 off the price of the car, followed by a five-year loan at 5.46%.
Incentive B does not have a cash rebate, but provides free financing (no interest) over five years.
What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT =
The difference in monthly payments between the two offers is $
(Round to the nearest cent as needed.)
Which incentive is the better deal? Choose the correct answer below.
OA. Incentive A is the better deal.
B. Incentive B is the better deal.
PA
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