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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. A. Incentive A is the better deal. OB. Incentive B is the better deal.

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. A. Incentive A is the better deal. OB. Incentive B is the better deal.

Essentials Of Investments
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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Suppose that you decide to buy a car for $63,000, 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 $6000 off the price of the car, followed by a five-year loan at 7.72%. 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. A. Incentive A is the better deal. B. Incentive B is the better deal. PA n nt 1 - ( 1₁ + -/-) - ² n
Transcribed Image Text:Suppose that you decide to buy a car for $63,000, 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 $6000 off the price of the car, followed by a five-year loan at 7.72%. 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. A. Incentive A is the better deal. B. Incentive B is the better deal. PA n nt 1 - ( 1₁ + -/-) - ² n
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