John Rossini works for a Ford dealership. Alice Field is shopping for a Taurus. She would like the high-end model with leather seats, moon roof, and other amenities, but it is beyond her budget. Alice settles on a base model, trades in her current automobile, and asks for a 36-month loan for the balance. John works out some figures. He explains to Alice that by extending the loan term to 48 months, she can buy the more expensive model while keeping her payments the same as for the cheaper mode; on a 36-month term. How do dealer and consumer both benefit from this offer?
John Rossini works for a Ford dealership. Alice Field is shopping for a Taurus. She would like the high-end model with leather seats, moon roof, and other amenities, but it is beyond her budget. Alice settles on a base model, trades in her current automobile, and asks for a 36-month loan for the balance. John works out some figures. He explains to Alice that by extending the loan term to 48 months, she can buy the more expensive model while keeping her payments the same as for the cheaper mode; on a 36-month term. How do dealer and consumer both benefit from this offer?
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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John Rossini works for a Ford dealership. Alice Field is shopping for a Taurus. She would like the high-end model with leather seats, moon roof, and other amenities, but it is beyond her budget. Alice settles on a base model, trades in her current automobile, and asks for a 36-month loan for the balance. John works out some figures. He explains to Alice that by extending the loan term to 48 months, she can buy the more expensive model while keeping her payments the same as for the cheaper mode; on a 36-month term.
How do dealer and consumer both benefit from this offer?
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