You need a new car and the dealer has offered you a price of $20,000​, with the following payment​ options: (a) pay cash and receive a $2,000 ​rebate, or​ (b) pay a $5,000 down payment and finance the rest with a 0% APR loan over 30 months. But having just quit your job and started an MBA​ program, you are in debt and you expect to be in debt for at least the next 2​ ½ years. You plan to use credit cards to pay your​ expenses; luckily you have one with a low​ (fixed) rate of 15.00% APR​ (monthly). Which payment option is best for​ you?       Question content area bottom Part 1 Your monthly discount rate is enter your response here​%. ​(Round to four decimal​ places.)

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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You need a new car and the dealer has offered you a price of
$20,000​,
with the following payment​ options: (a) pay cash and receive a
$2,000
​rebate, or​ (b) pay a
$5,000
down payment and finance the rest with a
0%
APR loan over 30 months. But having just quit your job and started an MBA​ program, you are in debt and you expect to be in debt for at least the next 2​ ½ years. You plan to use credit cards to pay your​ expenses; luckily you have one with a low​ (fixed) rate of
15.00%
APR​ (monthly). Which payment option is best for​ you?
 
 
 

Question content area bottom

Part 1
Your monthly discount rate is
enter your response here​%.
​(Round to four decimal​ places.)
 
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