Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Chapter 8, Problem 4DTM
Summary Introduction
Case summary: The Person KP is looking to purchase a new car where the person is in dilemma about financing decision. The person have two options either dealer finance can be done or loan from the bank can be taken. The person is looking for most appropriate and cost effective financing for new car.
Character in the case: Person KP
Adequate information:The price of the car model is $34,000. Dealer is offering rebate of $2500 at 2% APR along with down payment of $1000. Monthly payment will be $578 for 60 months. Bank is offering loan at 5% APR.
To determine: The most beneficial offer amongst dealer financing and bank loan.
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Personal Finance (MindTap Course List)
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